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.

Manufacturers in China have found workarounds, and experts say that could be a lesson for U.S. policymakers. Export data released last week show EV exports from China to the European Union increased 8.3% year-over-year, a reversal of the approximately 40% and 25% plunges the measurement took in October and November, respectively.

Tesla, BMW challenge EU tariffs on China-made EVs. EV success: Norway on track to be first country to go fully electric. Smithfield Foods prices IPO at $20 per share

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