Tesla’s sales in Hong Kong plunged during much of 2017 after the local government cut tax incentives for electric vehicles.
The removal of tax incentives in Hong Kong almost doubled the price of some Tesla models.
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.
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.
via The Global Warming Policy Forum (GWPF)
February 6, 2018 at 05:47AM