Tesla's legal challenge is in response to the EU introducing tariffs at the end of October of 7.8 percent on Tesla's China-made vehicles. The bloc has also set tariffs of up to 35.3 percent on other China-made EVs. The new tariffs come on top of a 10 percent standard import tariff that was already in place for electric vehicle imports into the EU.

Elon Musk's Tesla and German auto giant BMW have challenged EU import tariffs on China-made electric vehicles at the bloc's top court, the European Commission said Monday. Under the EU tariff scheme,

Tesla and Germany’s BMW are suing the European Commission, joining a growing band of Chinese automakers to oppose the European Union on its punitive tariffs on electric vehicles.