China Will Extend Current 'New Energy' Vehicle Subsidy Program by Five Years (TSLA) (KNDI)

Tesla Motors (Nasdaq: TSLA) and Kandi Technologies Group (Nasdaq: KNDI) are on watch Tuesday following news that subsidies for new energy vehicles will be extended for another five years.

China Daily said China's Ministry of Finance will extend subsidies until 2020. The current expiration for incentives is 2015.

Subsidies cover pure electric, highly electrified plug-in hybrid, and fuel cell vehicles.

The amount subsidized will be scaled down from 2016 through 2020.

Beijing officials set a goal of having 5 million new energy vehicles on the road by 2020, though current numbers far lag that expectation.

Shares of Tesla are lower in early trading, while Kandi Tech is indicated higher.

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