Tesla is not the only company reviewing its Europe investment after Biden's Inflation Reduction Act

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Many multinationals are reconsidering or changing previous plans to deploy new money into Europe.

Meanwhile, Ilham Kadri, CEO of Solvay, a chemicals company headquartered in Belgium, said in January: "The reality is that the Biden administration incentivizes when Europe regulates — to put it black in white."Tesla last month decided to scale back some investments in Germany and focus on the North American market instead to benefit from the IRA.

"The focus of Tesla's cell production is currently in the United States due to the framework created by the United States Inflation Reduction Act ," the company said on Feb. 22, according to Reuters. A spokesperson for the company was not available when contacted by CNBC Thursday. It comes as both businesses and analysts argue that the simplicity of the IRA is too attractive to pass up on.

"The IRA is constructed in a way that is first of all, very simple. And simplicity is always a winner. By contrast, the European Union machinery is a lot more complex," said Maria Demertzis, senior fellow at the think tank Bruegel.

 

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Tesla is not the only company reviewing its Europe investment after Biden's IRAMany multinationals are reconsidering or changing previous plans to deploy new money into Europe. Boycott Tesla
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