POLITICO — 2024-07-03
Automotive Industry
Such an inspection could result in Tesla getting a lower duty than the average of 21% on Chinese EV-makers.
Tesla is one step closer towards securing a lower, individual duty on the cars it makes in China and ships to the European Union, after inspectors visited its operations in Shanghai last week (June 2024).
A note from the bloc’s trade arm — seen by POLITICO and dated 18 June 2024 — says the Commission intended to visit Tesla between 26 and 28 June 2024.
The three-day visit was notably much shorter than the inspections of other exporters, which lasted for up to several weeks earlier in 2024. It also came very soon after the Commission presented the duties on 13 June 2024.
Tesla is the largest exporter of electric vehicles from China to the EU, but the Commission initially did not select it for visits in the investigation into unfair Chinese state subsidies. The company therefore applied to receive individual treatment and had that request granted.
Such an inspection could result in Tesla getting a lower duty than the average of 21% because only individually verified producers are given their own duty.
Back in June 2024, the European Commission announced that the balancing duties — meant to counter Chinese government subsidies — will range from 17.4% for BYD to 38.1% for SAIC, with Volvo owner Geely in between at 20%.
A regulation due to be published on Thursday, 4 July 2024, would turn that announcement into law and could see some tweaks to the precise percentages. A final decision would then come in November 2024 — both on the final level of duties and Tesla’s fate — and would be put to a vote by EU governments.
The Commission’s trade arm sent the message to the Chinese Mission to the EU — and it was cloaked in formal diplo-speak: “The Directorate-General for Trade of the European Commission takes this opportunity to renew to the Mission of the People’s Republic of China to the EU the assurance of its highest consideration.”
POLITICO asked the Commission for a response.