Germany Drops EV Subsidies, Tesla Willing To Cover Difference Till Year End
What will Tesla do when EV subsidies eventually disappear in Malaysia too?
With the electric vehicle (EV) price wars in China (which Tesla started, by the way) heating up and causing so many carmakers to lose too much in profits that some of them had to shut down for good, only legacy carmakers and Tesla seem to be surviving in China. Now it seems Tesla may even disappear too.
We speculate this as Germany planned to end its government subsidy on EVs at the end of this year but at the last minute, implemented it immediately. Now, Tesla is offering matching discounts for the Model 3 and Model Y customers who take delivery by 31 December 2023. Why is Tesla this desperate?
Moreover, Germany’s EV subsidies offered buyers up to €4,500 (about RM22,999) in addition to €2,250 (roughly RM11,499) that would go to the manufacturer. While this may seem like a trivial number to some, imagine how much money this could snowball to if say 100 people bought Tesla cars before 31 December 2023?
Tesla responded to the German Government ending the EV subsidies by announcing that it would cover the difference for any buyer of the two aforementioned vehicles by the end of the year only. Normally, Tesla is very nonchalant and even stated in its early days it would “never” do discounts, so what gives?
Well, the simple answer is that Tesla really needs the sales from every other market it sells in simply to, I assume, break even in China as the market is getting pretty cut throat there. The funniest part of it all, at least to me, is that Tesla brought this on itself, or more accurately, Tesla CEO Elon Musk’s hubris caused all this.
On top of that, it was a slow and painful journey to the land of desperation but because Musk refused to humble himself despite knowing his product is inferior to the competition in every way (yes, this is a fact, even simple reading can prove it), he ended up starting the EV price wars in China and now can’t stop it.
So now I want to know what Tesla will do when even Malaysia eventually abandons its EV subsidies, it may not happen so soon as our Government is still trying hard to push for EV sales despite having counter-intuitive laws about it like the minimum price but it has to happen eventually. Will Tesla even still be around then?
We got all this from Carscoops and their full article is linked here. Thank you Carscoops for the information.
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