Charged: Tesla granted preferential EU tariff rate

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From the hotly-debated high-flier Tesla (TSLA), Wall Street’s newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with “Charged,” a weekly recap of the top stories and expert calls in the sector.

PREFERENCIAL EU TARIFF RATE: The European Commission, as part of its ongoing anti-subsidy investigation, disclosed to interested parties the draft decision to impose definitive countervailing duties on imports of battery electric vehicles from China. The disclosure of draft definitive findings is an intermediate procedural step in a trade defense investigation. The main disclosures, which are still subject to change, are adjustments of the proposed duty rates as follows: BYD – 17.0%, Geely- 19.3%, SAIC – 36.3%, other cooperating companies – 21.3%, all other non-cooperating companies – 36.3%.

The EC announced a decision to grant an individual duty rate to Tesla as an exporter from China, established at 9%, at this stage. “Tesla submitted a substantiated request for an ‘individual examination’ to determine its duty level based on the specific subsidies it received. This request has been under thorough examination and the assessment of the level of subsidies received is reflected in the duty levels at the definitive stage. The Commission verified the information during the verification visit in China and conducted the same checks as of the other sampled Chinese exporting producers,” the agency said in a questions and answers statement.

Baird says the impact of European Union electric vehicle tariffs on Tesla is better than feared. While there is no positive in additional tariffs, the 9% given to Tesla will have little impact relative to some competitors who will now face up to four-times Tesla’s tariff rate, the firm tells investors in a research note. Baird says this may remove an “element of fearing the unknown” given the European Union Commission telegraphed that Tesla would receive an individually calculated rate. The firm keeps an Outperform rating on the shares with a $280 price target.

After the European Commission, as part of its ongoing anti-subsidy investigation, disclosed to interested parties the draft decision to impose definitive countervailing duties on imports of battery electric vehicles from China, Barclays noted that the draft decision grants Tesla a 9% incremental tariff for Chinese imports, down from about 21% previously. This tariff is incremental to the current 10%, making for a total tariff of 19%, notes the firm, which calls this in line with its expectation for Tesla to receive a preferential rate compared to domestic Chinese EV makers. Barclays has an Equal Weight rating and $220 price target on Tesla shares.

Click here to check out Tesla’s recent Media Buzz Sentiment as measured by TipRanks.

CANADA TARIFF PLANS: Meanwhile, on Monday, Canada said it would impose a 100% tariff on the import of Chinese electric vehicles and also announced a 25% tariff on imported steel and aluminum from China, Promit Mukherjee of Reuters reports. The tariffs will be imposed starting October 1. Prime Minister Justin Trudeau told reporters Canada was acting to counter what he called China’s intentional, state-directed policy of over-capacity. “I think we all know that China is not playing by the same rules,” he told reporters. Tesla, BYD and Geely are among the car makers producing electric vehicles in China. 

FORD SHIFTING EV APPROACH: In its fully electric portfolio, Ford said it will prioritize the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027 and other future affordable vehicles. Ford also realigned its U.S. battery sourcing plan to reduce costs, maximize capacity utilization, and support current and future electric vehicle production. In addition to adjusting the cadence of product launches and realigning battery sourcing, Ford now plans to leverage hybrid technologies for its next three-row SUVs. As a result of this decision, the company will take a special non-cash charge of about $400M for the write-down of certain product-specific manufacturing assets for the previously planned all-electric three-row SUVs, which Ford will no longer produce. These actions may also result in additional expenses and cash expenditures of up to $1.5B and the company will reflect those in the quarter in which they are incurred, as a special item.

The rollout of Ford’s next generation of electric vehicles begins with a commercial van that will be assembled at Ford’s Ohio Assembly Plant starting in 2026. The first affordable vehicle off this new low-cost, highly efficient platform will be a mid-sized electric pickup launching in 2027 that is expected to cater to customers who want more for their money – more range, more utility, more useability. Ford is retiming the launch of its electric truck code-named “Project T3” to the second half of 2027. Taking all the learnings from F-150 Lightning customers, the truck will offer features and experiences never seen on any Ford truck, including upgraded bi-directional charging capability and advanced aerodynamics. The truck will be assembled at BlueOval City’s Tennessee Electric Vehicle Center. Retiming the launch allows the company to utilize lower-cost battery technology and take advantage of other cost breakthroughs while the market continues to develop.

Ford will develop a new family of electrified three-row SUVs which will include hybrid technologies that can offer breakthrough efficiency, performance benefits and emissions reductions versus pure gas vehicles and extend the range of the vehicle on road trips relative to pure electric vehicles.

FROM RIVIAN TO STELLANTIS: Tim Fallon, Rivian Automotive’s vice president of manufacturing operations, is leaving to pursue a new opportunity outside of the company, Ed Ludlow, Kiel Porter and Kara Carlson of Bloomberg reported, citing a message to employees. Fallon’s departure adds to the more than half a dozen high-level leaders that have left Rivian in recent months, Bloomberg pointed out.

Not long after, Stellantis (STLA) announced that Tim Fallon has joined the company as the head of Manufacturing in North America. “A seasoned manufacturing executive, Fallon joins Stellantis from Rivian where he led EV manufacturing operations. Prior to that, Fallon spent more than 16 years at Nissan (NSANY) where he held various positions in production including Vice President, Manufacturing Canton,” Stellantis stated.