China Plans Extension to EV Subsidy Policy Beyond 2015 (TSLA)
China's Finance Ministry said Saturday that it will extend subsidies for purchases of electric vehicles (EVs) after the current policy runs out in 2015, Reuters noted. Specific details of the new policy will be issued at a later date.
Current subsidies offer 60,000 yuan (about $9,800) for the purchase of an EV and 35,000 yuan for a
near all-electricplug-in vehicle.
China offered subsidies to bolster EV purchases as it looked to put 500,000 EVs on the road by 2015 and 5 million by 2020.
In January, Tesla said it would price the Model S sedan at about $120,000, which compares to the U.S. base price of around $81,000. Some believe the company could have charged double for the Model S, based on competitors prices.
Shares of Tesla are indicated higher early Monday.