Tesla is subject to EU Chinese anti-subsidy probe
The Financial Times reports Tuesday morning that Tesla (NASDAQ:TSLA), along with other European carmakers exporting from China, will be part of a probe by the EU into whether the country's electric vehicles industry is receiving unfair subsidies.
EU executive vice-president Valdis Dombrovskis stated on Tuesday that there is “sufficient prima facie evidence” to justify the probe into imports from China of battery-powered vehicles, which Brussels fears could overwhelm the bloc’s car industry.
“Strictly speaking, it’s not limited only to Chinese brand electrical vehicles, it can be also other producers’ vehicles if they are receiving production-side subsidies,” said Dombrovskis
Tesla currently ships electric vehicles from its Shanghai gigafactory to Europe, but there could be a potential decrease in these exports after the opening of the Berlin facility last year. It's worth mentioning that approximately 20% of all electric vehicles sold in Europe are produced in China.
The European Commission announced the investigation into Chinese subsidies almost two weeks ago.
The investigation drew swift criticism from China's Ministry of Commerce, which labeled it a «blatantly protectionist act» that could disrupt the global automotive sector.
Shares of TSLA are up 0.49% in mid-day trading Tuesday.
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