It’s All Over: Hong Kong Pulls The Plug On Electric Cars Incentives

Tesla’s sales in Hong Kong plunged during much of 2017 after the local government cut tax incentives for electric vehicles.

Data from Hong Kong´s Transport Department shows Tesla sales fell to just 32 between April and December 2017, a dramatic decline from the near 2,000 sales notched up over the same period of 2016.

The removal of tax incentives in Hong Kong almost doubled the price of some Tesla models.

Blow

A major blow for Tesla, it underlines how the company´s sales can be highly sensitive to changes in government policy.

There was also a similar fall in electric car sales in Denmark following the local authorities´ decision to end tax breaks.

Tesla shares were down 1.3% in pre-market trading on Monday.

Pressure

Tesla is lobbying the Hong Kong authorities to at least partially reverse the tax change.

The sheer scale of the sales slump is likely to have come as a surprise to the government, strengthening the hand of those supporting a rethink when it finalises its budget in the next few weeks.

In total, including non-Tesla models, just 99 electric cars were registered in Hong Kong over the last nine months of 2017.