Tesla (TSLA) Unlikely to Get EV Subsidies in China
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Is Tesla (Nasdaq: TSLA) unlikely to receive electric vehicle subsidies in China?
According to a recent piece in China's 21st Century Business Herald, the Chinese government is unlikely to subsidize Tesla automobile sales given that it is an imported product. The report has BMW Brilliance's Zinoro being a beneficiary of the upcoming policy and has been included in the government's national catalog of recommended energy-saving/new-energy cars. Being included in the catalog is a requirement to earn subsidies.
About 1,701 drivers in Beijing have applied for new-energy license plates as of February 8th, Want China Times said. That's near the quota allotted for the area.
While Tesla could eventually move to build a factory in China, it would need to partner with a Chinese company in order to do so. While that may be a while off, Tesla's Model S price of around $120,000 in China still compares favorably to competitors and may bolster sales regardless of a discount.
Shares of Tesla are up 0.7 percent.
According to a recent piece in China's 21st Century Business Herald, the Chinese government is unlikely to subsidize Tesla automobile sales given that it is an imported product. The report has BMW Brilliance's Zinoro being a beneficiary of the upcoming policy and has been included in the government's national catalog of recommended energy-saving/new-energy cars. Being included in the catalog is a requirement to earn subsidies.
About 1,701 drivers in Beijing have applied for new-energy license plates as of February 8th, Want China Times said. That's near the quota allotted for the area.
While Tesla could eventually move to build a factory in China, it would need to partner with a Chinese company in order to do so. While that may be a while off, Tesla's Model S price of around $120,000 in China still compares favorably to competitors and may bolster sales regardless of a discount.
Shares of Tesla are up 0.7 percent.
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