02:08 PM EDT, 06/12/2024 (MT Newswires) -- (Updates with further details from third paragraph onwards, and attempt to reach out to Tesla in the last paragraph.)

Tesla (TSLA) has asked the European Union for an individual examination that could result in the company receiving an individually calculated duty rate below the average rate of 21% applied to carmakers that cooperated with an EU investigation but were not individually sampled.

Companies that did not cooperate with the European Commission will face a 38% rate on top of the existing 10% import duty, the European Commission said in a statement Wednesday.

The provisional duties imposed by the commission on electric vehicle shipments from China will take effect July 4.

The commission said it "has provisionally concluded that the battery electric vehicles value chain in China benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers."

Tesla "may receive an individually calculated duty rate," following a substantiated request, the commission said.

The 21% duty is also on top of the existing 10% tariff. Other companies producing electric vehicles in China can seek a similar investigation of their situation later this year to avoid the 21% duty, the commission said.

Tesla did not immediately reply to MT Newswires' request for comment.

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