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.

BMW said in a statement that EU duties on battery electric vehicles “harm business models of globally active companies.”

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.

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.

Tesla's Shanghai subsidiary is suing the European Commission over tariffs imposed on Chinese-made electric vehicles, escalating tensions between Elon Musk and the EU.

Tesla and BMW sue EU over tariffs on electric vehicles from China, joining Chinese automakers that filed claims. Read more.

About a fifth of all electric cars sold across the EU last year, or 300,000 units, were built in China. Tesla accounted for 28 per cent of Chinese-made EVs imported into the bloc in 2023, more than any other brand, according to Transport and Environment, an environmental NGO.

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.

The EU hit Tesla with an additional 7.8% tariff for Model 3s exported to Europe from China. An investigation found that the Chinese government had provided unfair subsidies to local brands. Tesla accounted for roughly 28% of all Chinese-made EVs exported to Europe in 2023.

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.

BMW’s Chinese-made BEVs now incur EU import tariffs of close to 21%, while for BYD’ Auto the tariff rate is set at 17%; Geely 19%; and SAIC Motor 35%. Olof Gill, spokesperson for the European Commission (EC), confirmed earlier this week that the EU is prepared to respond to the case in court.