The European Union is looking into the impact on its EV industry from subsidized vehicle exports from China. Now, Tesla (NASDAQ:TSLA) as well as European car manufacturers exporting from China to the EU could come under the probe’s scanner, according to Reuters.
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The probe may not be limited to only Chinese brand EVs and could expand to other producers benefitting from production subsidies in the country. Tesla’s Shanghai plant is one of its largest globally.
Officials from the EU have hinted at sufficient primary evidence to warrant an investigation, and the development is weighing on Tesla shares in pre-market trading today.
Not just Tesla, shares of other major Chinese names in the EV space have also been under pressure over the past few weeks, as a combination of heightened domestic competition, a weak Chinese economy, regulatory actions, and unlikely new entrants in the EV space weigh on the sector.
Recently, networking equipment and smartphone maker Huawei teased an electric sedan and an electric SUV at its product launch event. Earlier this year, the company launched AITO M5, its first electric model.
What Is the Price Forecast for TSLA Stock?
Meanwhile, the Street has a consensus price target of $273.33 on Tesla, alongside a Moderate Buy consensus rating. Shares of the company have gained nearly 128% so far this year.
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