Tesla might be hit with a specifically calculated obligation on its vehicles produced in China and imported to Europe as a part of of the European Union’s resolution to lift tariffs on Chinese language electrical automobiles.

On Wednesday, the European Fee, the EU’s government arm, imposed greater tariffs on Chinese language EV makers of as much as 38%. These provisional duties will come into impact from July 4 if the EU doesn’t attain an answer with Chinese language authorities. 4 months after this, so-called “definitive measures” happen.

At this stage, Tesla “could obtain an individually calculated obligation fee,” the Fee stated.

Valdis Dombrovskis, the EU commissioner for commerce, informed CNBC on Wednesday that Tesla was making the case for decrease tariff charges, which the fee was inspecting.

“We are able to additionally look extra in depth in a selected scenario of Tesla and subsidies [that] Tesla has particularly obtained in China, and which will lead certainly to completely different degree of countervailing duties,” he stated.

Shanghai, China is residence to certainly one of Tesla’s greatest Gigafactories. In 2023, Tesla delivered 947,000 automobiles from its Shanghai manufacturing facility with 600,000 going to the China market and the remaining exported, in accordance with Chinese language state media.

Europe’s strikes comply with the U.S. the place the administration of President Joe Biden final month slapped 100% tariffs on Chinese language electrical vehicles.

Tesla CEO Elon Musk not too long ago addressed these U.S. tariffs.

“Neither Tesla nor I requested for these tariffs,” Musk stated in Might.

“Tesla competes fairly nicely out there in China with no tariffs and no deferential help,” Musk added. “I am in favor of no tariffs.”