Under stricter European Union regulations taking effect this year, automakers selling cars in Europe face large penalties if their vehicle

Tesla has joined BMW and Chinese producers in filing a challenge at the Court of Justice of the European Union (CJEU) against EU tariffs on China-made electric vehicles, according to a filing on the court's website on Monday.

Tesla's legal challenge is in response to the EU introducing tariffs at the end of October of 7.8 percent on Tesla's China-made vehicles. The bloc has also set tariffs of up to 35.3 percent on other China-made EVs. The new tariffs come on top of a 10 percent standard import tariff that was already in place for electric vehicle imports into the EU.

The automaker saw sales of its EVs drop 13% in the European Union in 2024, and is facing growing pressure as rivals launch a wave of cheaper EVs.

The EU imposed extra tariffs of up to 35% on Chinese-manufactured EVs in October after an anti-subsidy investigation found Chinese state support was unfairly undercutting European automakers.

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Elon Musk’s Tesla and Bayerische Motoren Werke AG (BMW) have sued the European Union’s (EU) executive, adding to a flurry of cases by Chinese carmakers attacking tariffs peaking at 45% on imports of electric vehicles (EVs) into the bloc.

BRUSSELS, Jan 27 (Reuters) - Tesla (TSLA.O), opens new tab has joined BMW and Chinese producers in filing a challenge at the Court of Justice of the European Union (CJEU) against EU tariffs on ...

European carmakers are urging Brussels to ease regulations to help them avoid buying carbon credits from rivals at increasingly high prices.

Tesla, meanwhile, benefits significantly from carbon credit sales. In 2023, the company earned $1.79 billion from credits, and its income from such sales more than doubled to $2.8 billion last year.

Elon Musk's Tesla and German auto giant BMW have challenged EU import tariffs on China-made electric vehicles at the bloc's top court, the European Commission said Monday.