European automakers face challenges from stricter EU carbon emission regulations, leading them to buy emissions credits from rivals like Tesla and Chinese companies. The regulations, mandating increased zero-emissions cars production,

Tesla, owned by Elon Musk, is taking the European Union (EU) to court over its tariffs on electric vehicles imported from China. Filed last Wednesday with the European Court of Justice (ECJ) by Tesla’s Shanghai division, the lawsuit comes in the wake of similar legal moves by BMW and other Chinese car manufacturers.

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.