Tesla, BYD, And Other EV Stocks To Watch As EU Votes To Approve Tariffs On Chinese EV Imports

European Union’s member states have expressed sufficient support for imposing definitive additional tariffs of up to 35.3% on China-made battery electric vehicle imports, the European Commission said in a statement on Friday.

What Happened: “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the commission said.

The commission added that it would continue to work with China to find an alternative solution.

EU first announced that it would impose tariffs on China-made EVs in June, alleging that EV manufacturers in China benefit from “unfair subsidies” and that their cheaper offerings pose a threat to European manufacturers. Provisional duties were imposed in July.

Potentially Impacted Stocks: The stocks that might potentially be affected by the definitive tariffs include:

1. BYD Co Ltd. BYDDY BYDDF: The Chinese EV giant exports significantly into Europe. In September alone, the company sold 33,012 units of its vehicles overseas, of which 30,512 were exported, including to Europe.
2. Tesla Inc. TSLA: Tesla, in addition to manufacturing within Germany, also imports vehicles into Europe from its gigafactory in Shanghai. EU has slapped an additional tariff of 7.8% on Tesla EVs made in China and sold in Europe.
3. Nio Inc. NIO and Xpeng Inc. XPEV: Shanghai-based Nio and Guangzhou-based XPeng also export their vehicles from China into Europe.

Other automakers to be impacted by the tariffs include BMW, Volkswagen, and SAIC Motors.

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