Tesla Excluded From EV Subsidies In Germany, Company Denies Wrongdoing

Elon Musk is surely buoyant about Tesla, but he won’t be happy with Germany’s Federal Office for Economic Affairs and Export Controls (BAFA) decision to removed the EV maker’s models from the list of electric cars eligible for subsidies.

This has sparked a row between Tesla and BAFA over whether the Model S is too expensive to qualify for the incentive, Reuters reports.

Germany’s incentive scheme for electrified vehicles has a price cap of 60,000 euros ($71,500), and BAFA claims that Tesla customers cannot order the base version of the Model S without ticking some extra features first, which pushes its price above the price limit.

“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.

Tesla has also said that the price cap was initially set by the German government to exclude them, but later the two sides reached a compromise “that allows Tesla to sell a low option vehicle that qualifies for the incentive and customers can subsequently upgrade if they wish.” The EV maker also said that they would investigate whether any customers were denied the entry-level version.

”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.”

Under Germany’s incentive scheme, buyers can get 4,000 euros off the price of a new electric vehicle and 3,000 euros off a new plug-in hybrid.


  • Wow Germany really hates Tesla. Before reading this story I was reading this one. Insane. Mercedes is crazy. Who does this? https://electrek.co/2017/12/02/mercedes-dismantled-tesla-model-x-weirdest-way-electric-suv/

    • Bash

      The couples should get a new G65, OR latest fully loaded S class. lol

  • Gullet

    How convenient for VW, BMW and Mercedes.
    I smell a rat.

  • Moveon Libtards

    A bunch of countries (the people) are tired of bailing out failing EV companies. The U.S. is next!

    But Tesla – which lost $619 million in Q3 – delivered only 3,590 vehicles in November in the US, down 18% from a year ago.

    There are all kinds of interesting aspects about this.
    One: 3,590 vehicles amounts to a market share of only 0.26%, of the 1,393,010 new cars and trucks sold in the US in November. Porsche outsold Tesla by 55% (5,555 new vehicles).

    Two: Tesla doesn’t report monthly deliveries. It wants to play with the big boys, but it doesn’t want people to know on a monthly basis just how crummy and by comparison inconsequential its US sales numbers are. Opaque and dedicated to hype, it refuses to disclose how many vehicles it delivered that month in the US. So the industry is estimating Tesla’s monthly US sales.

    Tesla discloses unit sales data in its quarterly earnings reports, long after everyone has already forgotten about the months in which they occurred.

    Three: So how are Model 3 sales doing? Since Tesla doesn’t disclose its monthly deliveries in the US, the industry is guessing. The assembly line still isn’t working. “Manufacturing bottlenecks,” as Tesla calls it, and “manufacturing hell,” as Elon Musk calls it, rule the day.

    In Q3, Tesla delivered 220 handmade Model 3’s. In October, it delivered about 145 handmade units. In November, the assembly line still wasn’t assembling cars. Inside EVs estimates that Tesla delivered a whopping 345 units in November.

    Four: This is where hype goes to die. In February 2017, Tesla hyped these Model 3 production numbers for 2017:

    Our Model 3 program is on track to start limited vehicle production in July and to steadily ramp production to exceed 5,000 vehicles per week at some point in the fourth quarter and 10,000 vehicles per week at some point in 2018.
    November is solidly in the fourth quarter. 5,000 vehicles per week would mean over 20,000 a month. OK, this is November and not December, so maybe 4,000 a week for a total of 16,000. We got 345.

    Even if the estimate of 345 is off by 100 units up or down, it doesn’t even matter. And December isn’t looking much better. Because there is still no mass-produced Model 3.

    Five: The bestselling Model S isn’t best-selling anymore. Inside EVs estimates that Tesla delivered 1,335 Model S in the US. This was far outpaced by the humble Model-3-killer the Chevy Bolt. GM sold 2,987 Bolts in November. Tesla is also estimated to have delivered 1,875 Model X SUVs in the US. It took the Model S and the Model X combined to beat the humble Bolt.

    Six: The unglamorous Model-3-killer is number one. The Chevy Bolt faces no “production bottlenecks” and no “manufacturing hell.” It was rolled out gradually, starting in October 2016 in California and Oregon, with other states being added to the distribution plan over time. By August 2017, the Bolt was available in all states. By September, 2,632 Bolts were sold in the US; in October 2,781; and in November 2,987.

    The Bolt became the best-selling EV in October and retained that crown in November. Nothing was even close. November was the ninth month in a row of rising sales, as it should be for a brand-new vehicle line. GM has sold 20,070 Bolts so far this year.

    Seven: But the Bolt is just a flyspeck for GM. It’s something to build the foundation for a larger shift to EVs. It represented just 1.2% of GM’s total deliveries in the US in November. EVs are still just a niche product. And yet, even this flyspeck crushed every Tesla model without fanfare.

  • Carmelo Van Cabboi

    They are just killing competitors. Now, that VW, Mercedes and BMW have some model out. German= Fraude. GERMANS car makers are Mafioso. That’s all

  • sidewaysspin

    Proof German car makers see Tesla as a real competitor that can endanger their dominant position.

  • Auf Wiedersehen

    Be interesting to see when the other home grown models come out from Porsche and all that go above that threshold, if the law will change.