Germany removes Tesla from the list of cars that receive subsidies

A German government agency has removed car manufacturer Tesla from a list of car models that are eligible for subsidy. There would be no version for sale below the maximum price of 60,000 euros, the statement reads. Tesla contradicts this.

As a result of the decision, there is no Tesla car on the list published Thursday by Germany’s BAFA. A spokesperson for the government agency told Reuters that it will not be possible for customers to buy a basic version of the Model S without extras, bringing the price above the €60,000 mark. Only cars below that limit are eligible for the so-called ‘Umweltbonus’, which is 4000 euros for fully electric cars and 3000 euros for plug-in hybrids. The government and car manufacturers have an equal share in this bonus.

A Tesla spokesperson told the news agency: “This is a completely unfounded accusation. Anyone in Germany can buy a basic version of the Model S without a comfort package and we have also supplied these types of cars to customers.” Tesla believed the price cap was created to deliberately exclude its cars. However, according to Reuters, a compromise has now been made whereby Tesla sells a model with few options and customers can upgrade later.

On Friday, the German magazine Auto Bild published an article in which it claims that its own research shows that it is not possible to purchase a Model S without an extra option package. According to the BAFA, the decision to remove the vehicles from the list was not the result of this investigation; the organization has been conducting its own investigation since July. It is now being investigated whether buyers will have to repay the German government’s share of the subsidy, ie half of the aforementioned amounts.

Tesla says it is investigating whether sales staff have been told that it is not possible to purchase a car without options. That would not be in line with his policy.