Tesla, the electric vehicle titan helmed by Elon Musk, has commenced legal proceedings against the European Union (EU) regarding tariffs imposed on electric vehicles (EVs) imported from China. The lawsuit, submitted last Wednesday by Tesla’s Shanghai branch to the European Court of Justice (ECJ), comes in the wake of similar actions from BMW and various Chinese automobile manufacturers.

The tariffs are part of the EU’s extensive strategy to combat what it views as unjust trade practices. An investigation conducted in 2023 revealed that Chinese EV manufacturers, including Tesla’s operations in Shanghai, profited from government incentives such as subsidized loans, reduced land costs, and benefits from suppliers.

In light of these findings, the EU enacted significant anti-subsidy tariffs in late October 2024. Tesla faced a tariff of 7.8 percent, while other manufacturers endured rates as high as 35.3 percent. These tariffs are in addition to the EU’s standard 10 percent import duty on vehicles.

As reported by *The Financial Times*, around 20 percent of all EVs sold in the EU last year — about 300,000 units — were sourced from China. Tesla’s comparatively lower tariff rate was due to a specific review that determined the company received considerably less financial backing from the Chinese government than its competitors.

Tesla’s legal submission does not reveal the details of its argument. The case will be presented in the General Court, the EU’s second-highest judicial entity, with the possibility to appeal the ruling to the ECJ. The entire legal timeline is expected to span roughly 18 months.