4 ms·

The only reason BYD was heavily "censored"/tariffed was because US said EU to do so. Now that US soft-power is waning (800b from EU + 500b from Germany alone f

The only reason BYD was heavily "censored"/tariffed was because US said EU to do so. Now that US soft-power is waning (800b from EU + 500b from Germany alone for militech) the floodgates might open and it will way surpass the Tesla. Maybe even some partnership between BMW/VW/Daimler with BYD can come out of it - imagine that.

joakleaf 2y ago
The official reason EU added tariffs on Chinese cars, was that Chinese EV manufacturers receive unfair government subsidies. This allowed Chinese cars to be priced lower than European cars. So it was to protect EU car manufacturers (which are still struggling a bit with EVs). I don't think it was US "soft-power". However, the EU may impose tariffs on US produced cars as part of the coming trade-war, which may hurt Tesla in future (or maybe not as they also produce Tesla cars in Germany).
- aaomidi 2y ago
  When we give Tesla owners 7500 USD to buy a tesla, that’s an “unfair government subsidy”.
- romanovcode 2y ago
  You are right, but you miss one critical part. EU did not impose those same tariffs on Tesla, which arguably disrupted the EU EV market even heavier, which is in very similar category, especially now that Elon is basically the president.
  - tpm 2y ago
    > EU did not impose those same tariffs on Tesla Presumably it didn't have evidence Tesla is receiving unfair help from the Chinese state. It had such evidence for other manufacturers. Also, Tesla has a factory in the EU. Soon, the Chinese manufacturers will have factories too.
    - olelele 2y ago
      Didn’t Tesla survive its first 10 years on selling government credits?
      - tpm 2y ago
        Possibly, the important thing though is whether that is classified as an unfair advantage by the EU. The European tariffs on Chinese EV producers were calculated precisely on the amount of unfair advantage received for each one. Also just had a look and Tesla has indeed been burdened with a tariff of 7.8% (for vehicles built in China), compared to 17% of BYD, 18% Geely and 20% to 35% for other companies. https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5589 https://ec.europa.eu/commission/presscorner/detail/en/ip_24_...
  - tpm 2y ago
    Correction, just had a look and Tesla has indeed been burdened with a tariff of 7.8% (for vehicles built in China). https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5589 https://ec.europa.eu/commission/presscorner/detail/en/ip_24_...
- lycopodiopsida 2y ago
  It is also worth mentioning, that the imposed tarifs are different for different chinese manufacturers - based on received subsidies. BYD is among the least affected. In the end, nothing stops chinese manufacturers to produce cars in EU - it is what they forced european manufacturers to do in china, so fair game.

joakleaf 2y ago

The official reason EU added tariffs on Chinese cars, was that Chinese EV manufacturers receive unfair government subsidies. This allowed Chinese cars to be priced lower than European cars. So it was to protect EU car manufacturers (which are still struggling a bit with EVs). I don't think it was US "soft-power". However, the EU may impose tariffs on US produced cars as part of the coming trade-war, which may hurt Tesla in future (or maybe not as they also produce Tesla cars in Germany).

aaomidi 2y ago
When we give Tesla owners 7500 USD to buy a tesla, that’s an “unfair government subsidy”.
romanovcode 2y ago
You are right, but you miss one critical part. EU did not impose those same tariffs on Tesla, which arguably disrupted the EU EV market even heavier, which is in very similar category, especially now that Elon is basically the president.
- tpm 2y ago
  > EU did not impose those same tariffs on Tesla Presumably it didn't have evidence Tesla is receiving unfair help from the Chinese state. It had such evidence for other manufacturers. Also, Tesla has a factory in the EU. Soon, the Chinese manufacturers will have factories too.
  - olelele 2y ago
    Didn’t Tesla survive its first 10 years on selling government credits?
    - tpm 2y ago
      Possibly, the important thing though is whether that is classified as an unfair advantage by the EU. The European tariffs on Chinese EV producers were calculated precisely on the amount of unfair advantage received for each one. Also just had a look and Tesla has indeed been burdened with a tariff of 7.8% (for vehicles built in China), compared to 17% of BYD, 18% Geely and 20% to 35% for other companies. https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5589 https://ec.europa.eu/commission/presscorner/detail/en/ip_24_...
- tpm 2y ago
  Correction, just had a look and Tesla has indeed been burdened with a tariff of 7.8% (for vehicles built in China). https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5589 https://ec.europa.eu/commission/presscorner/detail/en/ip_24_...
lycopodiopsida 2y ago
It is also worth mentioning, that the imposed tarifs are different for different chinese manufacturers - based on received subsidies. BYD is among the least affected. In the end, nothing stops chinese manufacturers to produce cars in EU - it is what they forced european manufacturers to do in china, so fair game.