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Tesla Motors, Inc. (NASDAQ:TSLA): France Leaves Out Model S/X From New EV Program

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Tesla Model S and Model X buyers will not get incentives if the new EV incentive program is approved in France

In May, Tesla Motors Inc (NASDAQ:TSLA) issued a blog post on its German website, claiming that it was purposely left out of the new electric vehicle (EV) incentive program. Under the program that was partly funded by German car manufacturers, only vehicles with retail prices of less than €60,000 ($67,500) could quality for discounts, compared to Model S base price of €76,600 in Germany.

Now, another European powerhouse, France, is trying to follow its neighboring country by changing the policy of its existing policies for EV incentives, excluding the young Californian EV maker, Electrek reported (via Autoactu). The government will provide discounts on new battery-powered vehicles that has price of lower than €40,000, while the Model S starts at €70,900 in the country.

The changes, which would effectively exclude both the Model S and Model X, still requires to be approved into the “Finance Act” in December to ensure that the new rules are applicable next year. French customers considering purchasing a Tesla car must place orders now to get their deliveries before the end of this year.

While the new price cap is the biggest change, there were some other adjustments in the program. The government will reduce the incentives for buying a new EV by €300 to €6,000; however, the buyers will be given additional €4,000, if they agree to trade a diesel engine vehicle having life of at least 10 years.

Moreover, the incentive of €750 on hybrid electric vehicles will be waived off, while maintaining the inventive of €1,000 on plug-in hybrid electric vehicles.

Currently, there are incentives worth €6,300 for Tesla cars in France; yet, the automaker cannot sell large number of vehicles in the country. According to registration data collected by EV Sales Blogspot, Tesla sold just 485 Model S’ in the country during the first eight months of 2016, and 708 sedans in 2015. French consumers usually opt for their local brand, Renault, and its strategic partner Nissan.

Only Tesla Model 3 will be able to qualify for the incentives in France, which means that Tesla sales will decline through the next year till the compact sedan is available for the French public. The company has 11 stores, four service centers, 41 Superchargers, and 100 Destination Charging locations in the country.

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