China’s biggest EV maker, BYD, built more electric cars than Tesla in 2024, signaling a global shift toward cheaper electric cars.

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

Tesla, owned by Elon Musk, is taking the European Union (EU) to court over its tariffs on electric vehicles imported from China. Filed last Wednesday with the European Court of Justice (ECJ) by Tesla’s Shanghai division, the lawsuit comes in the wake of similar legal moves by BMW and other Chinese car manufacturers.

The EU imposed extra tariffs of up to 35% on Chinese-manufactured EVs in October after an anti-subsidy investigation found Chinese state support was unfairly undercutting European automakers.

Mercedes-Benz has joined its Chinese joint venture partner Geely's legal challenge at the Court of Justice of the European Union (CJEU) against EU tariffs on China-made electric vehicles, a company spokesperson said on Tuesday.

BMW said in a statement that EU duties on battery electric vehicles “harm business models of globally active companies.”

Tesla and Germany’s BMW are suing the European Commission, joining a growing band of Chinese automakers to oppose the European Union on its punitive tariffs on electric vehicles.