Germany forces 1050 Tesla owners to forgo electric car bonus

Marco Green
July 20, 2018

Germany's Federal Office for Economic Affairs and Export Control said 1,050 owners of a Tesla Model S will be forced to forgo a 2,000 euro electric auto subsidy because the value of their vehicles had surpassed an eligibility threshold.

The federal office for economic affairs and export control said only vehicles costing €60,000 or less qualified for Germany's "environmental bonus", meant to encourage the purchase of electric cars.

Tesla in response to prosecution claims that the cars basic value of 60 thousand euros was offered not only to buy, but shipped to customers.

The program was created to boost sales of plug-in hybrid and battery vehicles. According to authorities, Tesla deliberately understated the base price of the Model S to match the requirements of the program.

The incentive was meant to apply only to cars costing less than 60,000 euros (about $70,000).

Tesla will appeal the decision and will cover the cost of the bonus until the situation is resolved, the US automaker said on Wednesday in an emailed statement.

Engineering research and consulting firm Munro & Associates has recently revealed that it has completed its teardown and analysis of Tesla's Model 3 electric vehicle. A Model S 75D, the lowest-priced option, is now listed for 72,000 euros on Tesla's website.

Specifically, the final Tesla Model 3 teardown report by Munro & Associates has revealed a gross margin of more than 30 percent for the vehicle, on the lines of the projections voiced repeatedly by Tesla Motors CEO Elon Musk.

"Talks with Tesla unfortunately did not lead to a solution", according to the government office's statement, which added that the goal had been to avoid hurting customers.

Other reports by Click Lancashire

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