Tesla not to be scrutinized in EU electric vehicle probe

Key Points

• 🇪🇺 Tesla is not under scrutiny in the EU electric vehicle probe investigating subsidy manipulation from vehicles imported from China to Europe.
• 🚗 The EU is examining whether subsidies provided to vehicles exported from China are fair, but Tesla is not part of the investigation.
• 🚫 Instead, BYD, SAIC Motor, and Geely will be investigated for potential subsidy irregularities in EU subsidies.
• 🚀 The complaint about subsidies distorting the European market comes from EU Chief Ursula von der Leyen.
• 🌍 Roughly one-fifth of EVs sold in Europe are manufactured in China.

Tesla is not going to be scrutinized in a probe from the European Union that will investigate potential subsidy manipulation from vehicles built and imported into Europe from China.

In September, we reported on a potential probe from the EU that would investigate several brands that export vehicles from China to Europe to judge the fairness of subsidies granted by European countries.

EU officials started to question whether Tesla and other automakers that export from China are receiving unfair advantages in terms of subsidies provided to those vehicles.

EU Executive VP Valdis Dombrovskis said regarding the probe:

“Strictly speaking, it’s not limited only to Chinese brand electrical vehicles, it can be also other producers’ vehicles if they are receiving production-side subsidies.”

Dombrovskis went on to say that the EU is open to competition, but it needed to be fair. Large markets have already introduced tariffs on batteries and EVs from China, and the EU was considering the same strategy.

While the EU will still investigate several brands, Tesla is not one of them, the South China Morning Post reported.

Instead, the report states BYD, SAIC Motor, and Geely will be investigated for potential foul play in EU subsidies.

The complaint about the subsidies comes from EU Chief Ursula von der Leyen, who said a “flood” of Chinese EVs was “distorting” the European market.

If the initial probe into BYD, SAIC, and Geely ends up showing evidence of subsidy distortion that would enable unfair competition, Tesla, along with other companies that have vehicles made in China and sent to Europe, could end up being added to the investigation.

Roughly one-fifth of EVs sold in Europe are built in China.