7/18/2018

Tesla Owners in Germany Ordered to Return Subsidy

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Germany has ordered about 800 Tesla Model S electric cars owners to pay back a €4,000 ($4,700) government subsidy they received.

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Germany has ordered about 800 Tesla Model S electric cars owners to pay back a €4,000 ($4,700) government subsidy they received, Bloomberg News reports.

The Federal Office for Economic Affairs and Export Control says it dropped the Model S from its “environmental bonus” program last November after discovering that the cheapest Model S available in Germany retailed at €72,000 ($83,900).

The incentive applies to vehicles that cost no more than €60,000 ($70,000). But the agency apparently continued to dole out the payments for more expensive Model S cars for several months.

Tesla insists it has always offered a base version of the Model S priced below the €60,000 cutoff. The company is covering the cost of the payback order but has appealed the government’s ruling.

Bloomberg says the agency restored the incentive as of March 7 after Tesla proved that customers in Germany could, in fact, take delivery on a Model S that costs less than €60,000. The cheapest Model S listed on Tesla’s U.S. website starts at $82,800 (€71,000).