According to reports, Tesla (TSLA) may become one of the targets of the European Union’s anti-subsidy investigation into Chinese electric vehicles. Early evidence gathered by the EU suggests the U.S. carmaker is among the companies benefiting from China's support for the electric vehicle industry. The stock fell premarket after the news was announced.
EU Executive Vice President Valdis Dombrovskis said on Tuesday there was "sufficient preliminary evidence" to justify an investigation into electric vehicle imports from China.
Asked whether Tesla would be a car brand that might be investigated because of the cars its Shanghai factory delivers to Europe, Dombrovskis said: "Strictly speaking, this is not limited to Chinese brands of electric cars. If other manufacturers' cars receive production subsidies, they may also be investigated."
Earlier this year, other EU officials made similar comments about the need to investigate imports. Nearly a fifth of all electric cars sold in Europe are made in China.
Chinese electric vehicle companies NIO (NIO), Xpeng Motors (XPEV) and BYD have all increased exports to Europe this year but still account for relatively small market shares.
Tesla shares fell nearly 1% in premarket trading, but the stock remains comfortably above its 100- and 200-day moving averages. In comparison, NIO (NIO.US) fell 1.56% before the market opened, and Xpeng Motors (XPEV.US) fell 1.45%.