According to media reports, following the sudden termination of the electric car subsidy program by the German government, Tesla announced that the company would self-fund subsidies for affected German buyers.
Tesla posted on its official account, stating, "In order to continue supporting the transition to sustainable energy, Tesla will compensate for the discontinued subsidies by the German government for Model 3 and Model Y electric vehicles. The subsidy will be provided for vehicles delivered from December 18 to December 31, and we will maintain the manufacturer's share of €2250."
Before the end of the German electric car subsidy program, consumers purchasing electric cars could receive a €6750 discount, jointly provided by the German government and Tesla, with Tesla contributing a discount worth €2250. Going forward, Tesla will cover the entire €6750 electric car subsidy.
Prior to the Tesla subsidy, the prices of Model Y in Germany were as follows:
Model Y Rear-Wheel Drive - €44,890
Model Y Long Range - €54,990
Model Y Performance - €60,990
The prices of Model 3 in Germany before the Tesla subsidy were as follows:
Model 3 Rear-Wheel Drive - €42,990
Model 3 Long Range - €51,990
Earlier, the German Federal Ministry for Economic Affairs and Climate Protection (BMWK) announced the termination of the electric car subsidy program on December 16. The BMWK stated, "As part of the negotiations for the Climate and Transformation Fund (KTF), the government decided to terminate support provided through the environmental bonus on December 13. As of December 17, 2023, no new applications for the environmental bonus will be submitted to the Federal Office for Economic Affairs and Export Control (BAFA). This decision is primarily based on a ruling by the Federal Constitutional Court, which requires the withdrawal of €60 billion from the Climate and Transformation Fund. Therefore, the economic plan for KTF in 2024 must be redrafted, with reduced available resources."
The BMWK noted that the department would stop accepting new applications for electric car subsidies on December 17, and applications received before that date would still be processed and approved.
Since 2016, the BMWK's electric car subsidy program has paid €100 million in subsidies for 2.1 million electric cars, making the ministry consider its electric car subsidy program successful.
