Tesla Inc. has requested the European Union to apply a lower tariff rate to its electric vehicles imported from China, citing minimal state support compared to other manufacturers. This request aims to secure a duty level aligned with the subsidies received, as stated by Olof Gill, a European Commission spokesman. Other companies producing in China can similarly seek an investigation later this year to avoid a 21% levy in addition to the existing 10% tariff. Tesla's push for a lower tariff rate is significant, as CEO Elon Musk has been aggressively exporting EVs into the EU from the company's Shanghai factory, which serves as its main hub for vehicle exports. 

While Tesla assembles Model Y SUVs in Germany, it imports Model 3 sedans from China. The European Commission announced that state-owned SAIC Motor Corp., owner of the British brand MG, will face a 38.1% additional tariff, while Geely Holding Group and BYD Co. vehicles will be subject to 20% and 17.4% duties, respectively. Chinese EV producers who cooperated with the Commission’s investigation but were not part of the sampled companies will face a 21% weighted average duty. Those that did not cooperate will be subject to the higher 38.1% rate.