Tesla Hit With Fresh Setback in Europe as Turkey Hikes EV Tax

Tesla Inc.’s efforts to mitigate slumping European sales with gains in Turkey may be at risk after a surprise tax hike in one of the automaker’s fastest-growing markets.

Turkey has raised the lowest tier of its special consumption tax for electric vehicles — which includes Tesla’s top-selling Model Y — to 25% from 10%, according to a presidential decree published in the country’s Official Gazette.