The European Union (EU) has launched an investigation into potential subsidies provided by China to electric vehicle (EV) manufacturer Tesla (NASDAQ:TSLA). The probe, which came to light on Tuesday, is believed to be affecting other EV manufacturers such as BYD Co (SZ:002594)., SAIC Motor Corp., Nio (NYSE:NIO) Inc., BMW (ETR:BMWG), and Renault (EPA:RENA).
This development surfaces amidst declining stocks for Tesla and Nio Inc. Despite the stock downturn, Tesla's sales in Western Europe have remained high, with the company also enjoying exclusive benefits in China.
Central to the EU's investigation is Tesla's Gigafactory Berlin-Brandenburg. The probe has attracted criticism from Beijing and sparked interest from various European countries. France, Spain, Italy, and Turkey have all shown interest in securing a Tesla factory within their borders.
The EU's move to scrutinize potential subsidies could reshape the competitive landscape in the EV market. With Tesla's strong sales performance in Western Europe and unique advantages in China, the investigation could have significant implications for both the company and its competitors.
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