Tesla to Compensate Buyers for EV Subsidy Cuts in Germany

Tesla is taking a proactive stance in response to the recent termination of government electric vehicle (EV) subsidies in Germany. As of December 18, 2023, Tesla has announced it will compensate buyers for the subsidy cut with new Model 3 and Model Y orders scheduled for delivery by December 31, 2023.

Germany, a key player in the global automotive market, and home to Tesla’s Giga Berlin, has promoted environmentally friendly transportation through various incentive programs. Until recently the government had offered a subsidy of €6,750, including €4,500 from the government, along with €2,250 from the automaker.

However, as government policies shift, that incentive package was abruptly cut short this month. Not wanting to leave customers in the lurch, Tesla is stepping in to alleviate the impact on those looking to make the switch to electric driving.

In a post on X (formerly Twitter), Tesla says it will maintain the manufacturer’s share of €2,250, and cover the previously committed government subsidy of €4,500. Tesla explained it was doing so to support the transition to sustainable energy.

This is not the first time Tesla has stepped up to make sure German customers get their EV subsidy. The company was in a similar position last year, although somewhat of their own making. Tesla Model 3 and Model Y reservation holders received their full government incentive, even if their car deliveries were delayed into 2023. Tesla has assured customers that if production delays resulted in 2023 deliveries, the company would cover the difference between the 2022 and 2023 incentives to ensure they receive the maximum benefit.

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