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Tesla sales stopped dead in Hong Kong after a tax break for electric cars was scrapped

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Tesla sales stopped dead in Hong Kong after a tax break for electric cars was scrapped

The decision by the Hong Kong government to eliminate a tax cut for electric vehicles would have a dramatic effect on Tesla car sales in the city.

Analysis of data from the Wall Street Journal showed that the new model of zero Tesla Model S and X Model SUV were registered in the shuttle service in April after the abandonment of the electrical equipment registration tax began earlier this month.

After that, only five private electric cars were registered in May.

The Wall Street Journal reported an increase in sales just before the April 1, 2939, change with Tesla vehicles recorded in March and nearly 3,700 in the Department books for the first quarter of 2017. The end of the reduction Tax was announced in February.

A Tesla spokesperson told Business Insider that although he is happy with the government’s policy to “facilitate the purchase of simple electric vehicles,” the company does not depend on the tax benefits for its livelihood.

“In China, for example, we have tripled our revenues from 2015 to 2016 despite a massive rate and no incentive. At the end of the day, when people like something, they buy it,” the spokesman said.

“Hong Kong continues to be a major market for Tesla and continue to sell cars every quarter. When the Hong Kong government has reduced the tax exemption for electric vehicles and has increased the cost of our cars almost 100%, it is expected that Application that should be hit in the period immediately following the change, in part because of the large amount it bought just before implementing the change. ”

Tesla’s worldwide sales reflect a fluctuating fortune in Hong Kong. In the first quarter of the year, the electric car manufacturer had its best period, sending 25,000 units and sending its stock price upwards to outperform Ford and closer to General Motors in market capitalization. Then, in the second quarter, world sales dropped to 22,000.

Tesla announced last week that the first batch of its cheaper Model 3 cars would be launched later this month. The US $ 35,000 vehicle can reduce the appetite for existing models much more expensive.

The Hong Kong experience also shows the sensitivity of electric vehicle sales to government incentives for cleaner transportation technology. The region has only 7.3 million people, but Fox Business reports that it is a major market for luxury cars.

Tesla spokesman said the company does not see Hong Kong sales in the long run.

“Tesla absolutely believes that the Hong Kong market will continue in the long run to be very strong because it is clear that Hong Kong people love our cars.”

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