Tesla assured potential and current customers that it would cover the difference in price with the EV incentive reduction in Germany if the automaker failed to deliver orders by the end of the year, according to Electrek.
Tesla’s performance in Germany
Tesla has successfully penetrated the German market owing to its strong pioneering efforts. With the launch of its German Gigafactory, the American automaker is now anticipated to perform significantly better in the coming years.
In retrospect, Tesla sold just short of 40,000 electric vehicles the previous year in the country. Surprisingly, early reports in September revealed that Tesla is planning to boost sales to 80,000 units this year. However, this target seems to be highly lofty as Tesla was short of 35,000 deliveries as of September.
Germany’s EV incentive reduction benefits Tesla’s ambitious target
German EV incentives will be drastically reduced starting in 2023 from 6,000 euros to 4,500 euros for EV cars with starting prices under 40,000 euros. For EVs that start at more than 40,000 euros, incentives will be decreased from 5,000 to 3,000 euros.
As a result, buyers are expected to rush to get a car before the incentives decrease or expire. Notably, it is one of the factors affecting Tesla’s target of delivering more than 40,000 vehicles to Germany in the fourth quarter.
That said, Tesla is offering potential buyers to shoulder the cost of Germany reducing its EV incentive if the automaker cannot deliver by the end of the year.
In the midst of a significant sales push in Germany, the automaker believes this move would provide customers with some sense of security. Tesla will undoubtedly exert all of its effort and accessible resources to fulfill orders for all its vehicles in the country. Otherwise, it will forfeit $2,000 for each delivery deadline missed.