Tesla is not the only company reviewing its Europe investment after Biden's IRA

Tesla precocious announced a strategy displacement distant from Europe arsenic it seeks to payment from unprecedented subsidies successful the United States. But it's not the lone institution reviewing concern decisions vis-à-vis Europe.

Many multinationals are reconsidering plans to deploy caller wealth into Europe. It comes aft U.S. President Joe Biden past twelvemonth presented the Inflation Reduction Act, oregon the IRA, which includes a grounds $369 cardinal successful spending connected clime and vigor policies.

The landmark legislation, which features greenish subsidies for businesses, has raised contention issues for European companies — and upset politicians successful the region. Brussels has been near considering however champion to respond.

Northvolt, a Swedish artillery maker; Linde, a chemic elephantine from Germany; Volkswagen, the carmaker; Enel, the Italian vigor giant, person each expressed an involvement successful profiting from U.S. subsidies. And determination could beryllium more.

"European companies, they similar to person the contiguous of the U.S. authorities alternatively than the punishment of the European authorities," Evangelos Mytilineos, CEO and president astatine the Greek concern conglomerate Mytilineos, told CNBC's "Squawk Box Europe" astir the further bureaucracy successful Europe.

When asked if helium would beryllium taking his concern to the U.S., Mytilineos replied, "It is simply a possibility. Unfortunately, it is not conscionable a anticipation for our company."

It is inactive aboriginal to measure conscionable however overmuch concern could drift distant from Europe arsenic a effect of Biden's policy. But truthful acold the connection from European businesses is clear: they privation officials successful the portion to bash much to enactment them.

In a code successful February, European Commission President Ursula von der Leyen said it was clip for a "simpler and faster framework." Previously, her squad had welcomed the efforts stateside for a cleaner economy, portion intensifying talks with their counterparts to guarantee European businesses would not flock to America.

But determination are fears it could beryllium excessively little, excessively late.

Peter Carlsson, the CEO of Northvolt, told CNBC successful February that his institution has been moving connected a North American plant. "And with the IRA that program benignant [of] got turbo boosted fixed the precise beardown incentives," helium added.

Northvolt is successful the midst of deciding whether to property up with its enlargement successful North America earlier doing truthful successful Germany.

Meanwhile, Ilham Kadri, CEO of Solvay, a chemicals institution headquartered successful Belgium, said successful January: "The world is that the Biden medication incentivizes erstwhile Europe regulates — to enactment it achromatic successful white."

Tesla past period decided to standard backmost immoderate investments successful Germany and absorption connected the North American marketplace alternatively to payment from the IRA.

"The absorption of Tesla's compartment accumulation is presently successful the United States owed to the model created by the United States Inflation Reduction Act (IRA)," the institution said connected Feb. 22, according to Reuters. A spokesperson for the institution was not disposable erstwhile contacted by CNBC Thursday.

It comes arsenic some businesses and analysts reason that the simplicity of the IRA is excessively charismatic to walk up on.

"The IRA is constructed successful a mode that is archetypal of all, precise simple. And simplicity is ever a winner. By contrast, the European Union machinery is simply a batch much complex," said Maria Demertzis, elder chap at the deliberation vessel Bruegel.

"Will firms successful the European Union oregon anyplace other postpone concern that they wanted to marque successful the European Union and really nett from the nonstop and precise elemental and contiguous payment that the IRA really promises?"

It's thing European officials are disquieted about, she added, and comes astatine a peculiarly hard time.

Economies crossed the EU cannot spend to suffer cardinal investments arsenic they conflict with a cost-of-living crisis. The bloc besides wants to beryllium autarkic of China and others for captious materials similar lithium.

"The EU is peculiarly alert that it needs to bash much to vie internationally," Demertzis said.

The European Commission, the enforcement limb of the EU, is inactive moving connected a Sovereignty Fund to supply financing for greenish projects, but the afloat details are not expected earlier June.