Germany Ends Tesla Model S Subsidies In Massive Blow To Company's Government Funded Business Plan

Apparently German government officials have finally woken up to the realization that it's utterly ridiculous to use tax revenue generated primarily from middle and low-income households to fund subsidy payments to rich people buying $100,000 luxury sports cars.  As Business Standard notes this morning, the German Federal Office for Economic Affairs and Export Controls announced that it will no longer subsidize the Tesla Model S as it can not be delivered in a configuration that meets the 60,000 euro price limit.

A German government agency has removed Tesla's Model S from the list of electric cars eligible for subsidies because it is not available in a version that falls within a 60,000 euro ($71,448) price limit.

 

Tesla customers could not order the Model S without extra features that pushed the price of the car above the limit, a spokesman for the German Federal Office for Economic Affairs and Export Controls (BAFA) said on Friday.

 

German magazine Auto Bild had reported that BAFA was looking into the issue and could take Tesla off the eligibility list.

Model S

According to Reuters, Germany launched their incentive scheme, worth about 1 billion euros, last year.  The funding requirements were shared by the German car industry to boost electric car usage. A price cap was included to exempt premium models.  Under the subsidy scheme, buyers get 4,000 euros off their all-electric vehicle purchase and 3,000 euros off plug-in hybrids.

Of course, Tesla has denied reports that their Model S does not comply with the price caps set under the subsidy scheme and has promised to "investigate and take appropriate action as necessary."

“This is a completely false accusation. Anyone in Germany can order a Tesla Model S base version without the comfort package, and we have delivered such cars to customers,” Tesla said in a statement.

 

”If a sales person told a customer they could not buy the Model S base version without the comfort package, this is not accurate and clearly outside our policies and procedures and we will investigate and take appropriate action as necessary.”

On the bright side, Tesla's new Model 3 should meet German subsidy price caps...if only they could figure out how to weld them together...

Comments

NoDebt Fri, 12/01/2017 - 09:42 Permalink

When this is all over and Tesla "investors" are crying in their beer, I bet Musk comes out with some bullshit statement about how Tesla was always about driving future technology, not about making a profit. 

inhibi JohninMK Fri, 12/01/2017 - 10:31 Permalink

"Apparently German government officials have finally woken up to the realization that it's utterly ridiculous to use tax revenue generated primarily from middle and low-income households to fund subsidy payments to rich people buying $100,000 luxury sports cars."Uh no no no no. Daimler and VW basically told the gov that they would not tolerate subsidies to an American car manufacturer. This has nothing to do with 'rich people buying cars'. Do you have any idea what subsidies are for? Promoting gov sponsored business, usually run in tandem by a network of corporate and political figures. Its all about the rich people, always was.

In reply to by JohninMK

SoDamnMad Life of Illusion Fri, 12/01/2017 - 10:56 Permalink

The tax incentive package Nevada lawmakers handed Tesla was 13 times larger than the state’s previous record-breaking deal awarded to Apple for a data center project in 2012. The deal included:

  • $725 million in sales tax abatements over 20 years.
  • $332 million in real and personal property tax abatements over 10 years.
  • $195 million in transferable tax credits.
  • $27 million in payroll tax abatements over 10 years.
  • $8 million in electricity rate discounts over eight years.

 If all goes to plan, Tesla will operate essentially tax free for a decade and at a substantial tax discount for another 10 years.

In reply to by Life of Illusion

Freddie Max Damage Fri, 12/01/2017 - 11:07 Permalink

Tesla was an Obama sweetheart. They and the Clintons/Bushes shook down and robbed foreign companies for billions including BNP bank for selling US Treasury bonds for the Russians.   They shook down Toyota as well.   A USSA govt extortion scheme.They did the same thing to VW.  Germans getting a little payback.  I am not a huge VW fan but they can build a turbo diesel that can get 90 to 100 mpg in probably a car the size of a Paast. 

In reply to by Max Damage

Tapeworm NoDebt Fri, 12/01/2017 - 12:08 Permalink

How idiotic can one get with these EV's? They cost more than double what my 1984 house cost. That one was actually pretty decently constructed and had low operating costs. My last car is a 2008 Opel disguised as a Saturn. It was 11,250 marked down from 16,250. No it isn't my Cobra, but it gets one around in relative comfort. A car that costs six times as much should not be on the tab of the taxcows. I surely taunt the little fat fart of NORK to lob a bomb into the mens' room of the Senate.

In reply to by NoDebt

any_mouse Arnold Fri, 12/01/2017 - 10:35 Permalink

Not exactly a socially mandated limit.

You are free to pay out of your own pocket for a more expensive vehicle.

It's getting to near closing time for the fiat bar. Everybody's trying to get their orders filled.

The New Morning in America will be accompanied by a massive hangover.

In reply to by Arnold

buzzsaw99 Fri, 12/01/2017 - 09:55 Permalink

Apparently German government officials have finally woken up to the realization that it's utterly ridiculous to use tax revenue generated primarily from middle and low-income households to fund subsidy payments to rich people...in what alternate universe is poor people being taxed so elon et al can get rich ridiculous?  it's called business as usual.

Bondosaurus Rex Fri, 12/01/2017 - 10:06 Permalink

Tesla soon to go on the trash heap with Polaroid, Montgomery Wards, JM FIelds, Wang, WAMU, LEHMAN,Enron, Calpine, Compaq, Kodak, Radio Shack, Circuit City, Blockbuster, Pan Am, Tower Records, and Pets.com.

Sonder Fri, 12/01/2017 - 10:12 Permalink

Meanwhile, Germany is still on fire courtesy of your local band of Somali rapists. Glad to see the German govt. is focusing on the important shit though. 

surf@jm Fri, 12/01/2017 - 10:14 Permalink

I understand the employee turn over rate at the Tesla plant, is quite large.....Thats usually a pretty good indicator of how well managed a company is.....But, leave it to corrupt politicians to fund bridges to nowhere with working peoples tax money......

CRM114 Fri, 12/01/2017 - 10:32 Permalink

"Woken up to the fact" = "Everyone in the Government who wanted to buy one now has one, so we can take the subsidy away from the plebs."

CRM114 Fri, 12/01/2017 - 10:33 Permalink

Auto sales guys lie to customers about what's optional.In other shocking news;The Sun rose in the East this morning.Bears seen heading for the woods with toilet tissue.