With EU carmakers in a ‘state of shock’ over Tesla-beating BYD’s prices, EU investigators will visit China’s EV giants as part of an anti-subsidy probe

Now, investigators from the European Commission will visit Chinese EV makers as part of a probe into whether they have an unfair advantage thanks to government subsidies.

In the coming weeks, the EU investigators will visit BYD, Geely, and SAIC, according to Reuters. Their visits will help determine whether the EU imposes higher tariffs to protect European carmakers.

BYD recently overtook Elon Musk’s Tesla as the global leader in sales of electric vehicles. Backed by Warren Buffett’s Berkshire Hathaway, the carmaker keeps its costs low partly by owning the entire supply chain of its EV batteries, significant since a battery accounts for roughly 40% of an electric vehicle’s price. But as the existence of the EU’s anti-subsidy investigation suggests, many worry there’s more than supply-chain efficiencies behind the low prices of Chinese EVs. The visits promise to be central to the EU probe, announced in September and set to run for 13 months.

Chinese EVs 'distorting our market' “Their price is kept artificially low by huge state subsidies. This is distorting our market,” European Commission President Ursula von der Leyen said in September of Chinese EVs. “And as we do not accept this distortion from the inside in our market, we do not accept this from the outside.”

The problem with “free trade” is that it cannot exist in the modern world.

Subsidies, tax differences, regulatory regimes and a thousand other government interventions means the playing field is incredibly complex and anything but free no matter where you are.

At this point any country that does not play to win is just dumb.

Let’s see now. Musk and Tesla strive to cut prices aggressively year over year.

Government’s push their auto manufacturers to raise prices.

Tech companies such as Tesla are YOUNG Corporate entities.

Auto companies are OLD entities with problems dating back to before anyone was born at this point.

Tesla tries to give the customer more for money in technology and style; Auto companies focus on profit.

In the EU every auto company is 45-49 percent owned by the National Government.

Greedy politicians are the problem. End their own personal corruption.

EU Energy prices are 4-6 times higher than the USA since NORDSTREAM I & II timeframe.

EU has only themselves to blame for high taxes 30-70 percent on wages, corporations, and taxes on energy paid from whatever was left after taxes for another 80% petro tax.

The Ukraine War Domestic Political Management across the EU to include planned and directed disruption of farming makes prices higher in the EU.

EU are more a Communist-Democracy than the Social-Democracy they were just 3 years ago.

The EU cannot take half of corporate earnings, half to 70 percent of peoples wages, and then expect their overtaxed economy to compete at time that energy costs have risen 4x for NG and 3x diesel and 3x for petro.

Shutting down the last German Nuclear Plant was the kill shot for EU competitiveness.

“EU Energy prices are 4-6 times higher than the USA since NORDSTREAM I & II timeframe.”

Yep, they chose a side in the Ukraine (the Neocon side), and I guess they didn’t factor-in what that meant for their economies, particularly Germany’s.

(but, to be fair, the Neocons would have blown up Germany’s pipelines with or without Germany’s consent, as they all but promised that outcome)

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