Tesla Pouts at Hong Kong for EV Incentive Cuts

[Marina Schwarz + 1,576]

Tesla may curb its presence in Hong Kong if the government doesn't do more to incentivize people to buy electric cars. Apparently, last year they cut the full car registration tax waiver, replacing it with a partial one and Tesla sold only 30 or so cars after it went into effect. Talk is that big automakers felt threatened by Tesla's success.

 

PS Did you know Hong Kong has a chief executive instead of mayor/president/PM? Fascinatin'!

[Petar + 76]

Tesla - the company that cannot exist without government subsidies.

[Pavel + 384]

A clear example of the subsidies that Tesla depends on to remain (partially) solvent. We'll see similar trends, though not as extreme when the US tax credit ends.

[franco + 96]

Tesla isn’t viable without government subsidies.

[damirUSBiH + 327]

Several facts which  are illustrating the situation with Tesla in HK:

- HK subsidized ~40% the value of a Tesla

- Conventional automakers couldn't compete

- They successfully lobbied to end the EV subsidy

 -Tesla sales collapsed, now the company is threatening to pull operations

 - Government has to keep fine-tuning policy

[Missy + 43]

2 hours ago, damirUSBiH said:

Several facts which  are illustrating the situation with Tesla in HK:

- HK subsidized ~40% the value of a Tesla

- Conventional automakers couldn't compete

- They successfully lobbied to end the EV subsidy

 -Tesla sales collapsed, now the company is threatening to pull operations

 - Government has to keep fine-tuning policy

Yes, this was the handiwork of the conventional automakers. 

[Rodent + 1,424]

Sounds like sour grapes to me. Back when HK pulled the incentives last year, Tesla was singing a different tune. In July:

"A Tesla spokesperson wrote to Quartz that the company’s business did not “rely on” government policies and the company believed that Hong Kong market would continue to be 'very strong'"

And now Tesla is crying because sales were impacted more than they thought they would be. Shocker of all shockers: Tesla's projections wrong again (have they ever hit one?). 

The market for a $100K+ Tesla is small. It needs subsidies. The big automakers know it.  Big auto 1, Tesla 0.

[Marina Schwarz + 1,576]

That's why they bet all on the Model 3. Now that could change the game if they manage to pull it off...

[Missy + 43]

Hong Kong is now introducing a new tax benefits for EVs, as shown in its budget today. Christmas for Tesla comes early, I guess.

[TomTom + 183]

I think they saturated the market there already