Tesla Reacts To Loss Of German EV Subsidy With Own Compensation Plan For Buyers
Portfolio Pulse from Anan Ashraf
Tesla Inc (NASDAQ:TSLA) has announced a compensation plan for German buyers of new Model 3/Y vehicles to offset the loss of the country's EV subsidy, which was terminated due to a budget crisis. Tesla will cover the subsidy termination for vehicles ordered from Dec 18 and delivered by Dec 31, and maintain its share of 2250€. In the U.S., certain Tesla models remain eligible for a federal EV tax credit.
December 19, 2023 | 3:08 am
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POSITIVE IMPACT
Tesla's initiative to compensate German buyers for the loss of EV subsidies may bolster brand loyalty and mitigate sales impact, potentially supporting TSLA's stock in the short term.
Tesla's decision to compensate buyers for the loss of the German EV subsidy is likely to be viewed positively by investors and customers. It demonstrates the company's commitment to maintaining sales momentum and supporting the adoption of electric vehicles despite regulatory changes. This proactive approach could help sustain demand for Tesla's vehicles in Germany, which is a significant market for EVs in Europe. The news may have a positive short-term impact on TSLA's stock price as it reflects the company's adaptability and customer-centric approach.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90