Government withdraws electric vehicle tax break
No more electric vehicle tax break, which started in April had a dramatic effect on sales of Tesla cars in the city of Hong Kong, according to Business Insider.
How Many Units Sold?
The WSJ reported a sales surge just before the April 1 rule change, with 2,939 Tesla vehicles registered in March and nearly 3,700 entering the department’s books for the first quarter of 2017.
Zero new Tesla Model S sedans and Model X SUVs were registered with the transport department in April.
Five privately owned electric cars were registered in May.
Tesla and Tax Breaks
Tesla’s global sales have somewhat mirrored the fluctuation in fortunes in Hong Kong. The first quarter of the year saw the electric car maker have its best period ever, shipping out 25,000 units and sending its share price rocketing upwards to surpass Ford and close in on General Motors in market capitalisation. Then for the second quarter, global sales reduced to 22,000.
A Tesla spokesperson told Business Insider that although it welcomes government policies and the company is not dependent on tax concessions for its livelihood.
The Hong Kong experience also shows how sensitive electric vehicle sales are to government incentives for cleaner transport technology. The region only has 7.3 million people but Fox Business reports it is a significant market for luxury cars.
The Tesla spokesperson said that the company doesn’t hold long-term concerns over sales in Hong Kong.
“Tesla absolutely believes that the Hong Kong market will continue to be very strong over the long-term because it’s clear that the people in Hong Kong love our cars.”
Read more at Business Insider