On the back of more subsidies, this time from China, TSLA shares are storming higher today. Up over 6% today to new record highs just below $200, we thought it fascinating that as debt-laden GM sees its Enterprise Value slide, TSLA's enterprise value is now 66% of GM's. We are sure this all makes sense somewhere deep in a growth investor's mind. When TSLA was birthed into the public markets in 2010, GM was over 20-times it size, now it is just 1.5 times...
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China paid electric car buyers a subsidy of between 35,000 yuan to 60,000 yuan per vehicle in 2013, according to Xinhua, China's news agency. That comes to about $5,780 to about $9,900.
Xinhua reports that the Finance Ministry announced Saturday that those subsidies would be trimmed only 5% in 2014 and 10% in 2015, only half the reduction in subsidy that had previously been announced.
Tesla is just starting to sell vehicles in China, which has become the largest market in the world for car sales.
Tesla is due to report fourth quarter results Feb. 19.
Chart: Bloomberg