The automaker estimates its struggling China business will cost $5 billion, but it isn't giving up on the country yet.

Chinese EV makers BYD, Geely, and SAIC contested EU's import duties at Court of Justice. Tesla excluded from tariffs, gaining only 7.8% tax.

Tesla is challenging the European Union in court over the tariffs imposed on its Chinese electric vehicles despite getting

The European automotive industry faces rising tensions as BMW and Tesla Shanghai file lawsuits against the European Commission

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.

Tesla and BMW have joined Chinese electric vehicle EV manufacturers in challenging the European Union EU tariffs on Chinese-made EVs filing cases

Both BMW and Tesla have been hit with tariffs by the EU on imports of electric vehicles made in China, along with other Chinese manufacturers such as BYD and SAIC.

Five years of rapid European growth for Chinese electric-car manufacturers ground to a halt in 2024, as trade barriers added to the challenge of building up sales in a stagnant market.Most Read from B

Brands led by SAIC Motor Corp.'s MG registered 3.5 per cent fewer EVs in the region for all of 2024, according to data from automotive researcher Dataforce

The European Union wants to work with Donald Trump to tackle China’s economic “non-market policies”, its trade chief said on Wednesday, in a rare public admission that the bloc wants to partner with the new US administration on issues tied to Beijing.

China has become the sixth largest country of origin for new vehicles registered in Europe, according to the latest data from JATO Dynamics.