Tesla Motors Wants in on China's EV Subsidies
February 12, 2014 10:37 AM
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It doesn't qualify because the Model S is an American import
The Detroit News
, Tesla Motors acknowledged that its Model S doesn't qualify for China's EV subsidies because it's an American import, but that won't stop the automaker from trying.
“We understand we don’t qualify for direct subsidies,” said Diarmuid O’Connell, Tesla’s VP of Business Development. “We’re hoping the government will consider the role Tesla can have in catalyzing electric vehicle adoption in China and extend those incentives to Model S as well."
The Model S will be sold in China starting next month, and subsidies for EVs will reportedly be cut much further than previously planned. Even though Tesla isn't eligible for the subsidies, it's a good start for potentially increased EV adoption.
China’s finance ministry said that subsidies would only be cut 5 percent this year, as opposed to 10 percent. In 2015, subsidies will be cut by another 10 percent as opposed to a previously planned 20 percent.
Tesla Model S
Tesla has some big plans for China, as CEO Elon Musk recently said that China might match the U.S. in volume "as early as next year."
Tesla has proven time and time again that being the small guy in the auto race doesn't mean coming in last. The automaker's value quadrupled last year (TSLA is currently
hovering around $196/share
) and its Q4 shipments of the Model S were 20 percent higher than expected.
In May 2013, Tesla repaid its $465 million loan from the U.S. Department of Energy (DOE)
nine years earlier
than expected from the original 2022 due date.
Last month, the automaker addressed a huge anxiety for potential EV drivers: electric range. It announced that Model S drivers could now
drive from coast to coast
without any doubt that they can find a Supercharger plenty of places in between.
Tesla even scheduled a road trip from Los Angeles to New York from January 31 through February 2, where Model S drivers proved a road trip can be done in the Model S in addition to mere daily commutes.
The Detroit News
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For China, subsidies = lower tariffs
2/12/2014 11:27:22 AM
The Model S is priced, after currency exchange, at USD ~$121k in mainland China but only USD ~$74k in Hong Kong due to differences in shipping/duties/fees.
Tesla has a mantra of passing all such savings (or additional costs) to the consumer, so it's possible that Chinese gov'ts will listen, but OTOH they probably don't see any need to lose import duty revenue for those who buy luxury cars.
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