Tesla (NASDAQ:TSLA) stock is in the news Tuesday as the electric vehicle (EV) company faces a potential anti-subsidy probe from the European Union (EU).
The issue Tesla faces is over its sale of EVs in the EU that are imported from China. This comes as the EU’s Competition Commission probe investigates companies exporting from China.
It’s not just Tesla that is facing a potential probe from the EU. Other EV makers could also be targeted in the probe as well. The EU claims that the EV market is flooded with cheap options that are kept cheap artificially due to government subsidies.
What That Means for TSLA Stock
If this probe does find Tesla exports too many of its EVs from China to the EU, it could have a negative effect on the price of the company’s cars. That includes potential tariffs on its EVs that come from China in great amounts, The Street notes.
Considering the ongoing price war between Tesla and other EV companies, it makes sense that TSLA stock investors don’t want this to happen. Doing so would potentially limit the company’s reach as customers seek out other options unaffected by tariffs.
TSLA stock is down 1.5% as of Tuesday morning with some 1.8 million shares traded. The company’s daily average trading volume is about 117 million shares.
Investors on the lookout for even more of the most recent stock market news will want to keep reading!
InvestorPlace is offering up all of the hottest stock market news for Tuesday! Among that is what’s moving shares of Safe & Green (NASDAQ:SGBX), TransCode Therapeutics (NASDAQ:RNAZ) and Tharimmune (NASDAQ:THAR) stock today. All of that news is available at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
