Tesla Inc said on Monday it would offer compensation to new car buyers in Germany to make up for the lack of government subsidies. The decision comes after the German government announced an early end to its electric vehicle subsidy program. The German Economy Ministry said on Saturday that due to the budget crisis, it would terminate the electric vehicle subsidy plan that was originally scheduled to expire at the end of the year early this Monday.
Previously, a ruling by the German Constitutional Court reduced the national budget by 60 billion euros, forcing the new budget to be reduced and forcing the government to shelve some plans to accelerate Germany's green transformation.
Tesla responded via its official account on the X platform on Monday that it would launch its own incentive program. “To continue to support the transition to sustainable energy, Tesla will compensate the German government for the end of its electric vehicle subsidy for new Model 3/Y orders (starting on December 18 for vehicles delivered before December 31). We will also maintain the manufacturer’s share of the subsidy of €2,250.”
Germany's electric vehicle subsidy is capped at 6,750 euros, of which 2,250 euros is borne by the car manufacturer. The plan was originally scheduled to expire at the end of 2024.