In a move to determine individual duty rates for electric vehicle (EV) imports from China, European Union (EU) inspectors visited the Tesla Giga Shanghai factory. This visit took place as the EU implemented provisional tariffs on China-made EVs on July 5, 2024.

According to Politico, the EU inspectors' visit to Tesla Giga Shanghai was relatively short compared to the extensive weeks they spent inspecting other automakers exported from China during the Commission's investigation.

It is worth noting that Tesla played a significant role in the investigation. The European Commission (EC) had initially received a request from Tesla to be included in the sample examined for the investigation. However, this request was ultimately rejected.

In early June, the Commission announced provisional countervailing duties that would take effect in July. Three companies, BYD, Geely, and SAIC, which were sampled in the investigation, were assigned individual duties. Tesla was not among the sampled companies due to the rejection of its request, but it still participated in trade proceedings with the Commission and Hearing Officer. As a result, Tesla received a lower duty rate of 20.8%.

Following the announcement of the provisional tariff rates in June, the Commission stated that Tesla might receive an individually calculated duty rate, similar to BYD, Geely, and SAIC. This visit to Tesla Giga Shanghai by EU inspectors is part of the process to determine the specific duty rate for Tesla.

The EU member states now have a four-month window to discuss and implement the European Commission's provisional tariffs. This inspection of Tesla Giga Shanghai is a crucial step towards establishing the individual duty rates for the company.

As the European Union continues to address the tariffs on Chinese EV imports, this inspection highlights the significance of Tesla's potential impact on the European market and underscores the importance of fair trade practices within the global EV industry.