Zero-emissions getting zero sales.
Tesla is taking a major hit as the Chinese territory of Hong Kong pulls tax incentives on zero-emissions electric vehicles, with the US manufacturer recording zero sales in the months of April and May, according to data from the HK Transportation Department. On a larger scale, only 5 new EVs were registered in that same timeframe.
The tax incentives for electric vehicles were scrapped on the 1st of April, though sales soared through February following the announcement of the incentive repeals. In the first quarter of 2017, nearly 3700 new Teslas were registered, including some 3000 in March alone. Hong Kong had initially waived registration taxes for electric vehicles to push sales, though that was revised to only waive taxes for the first US$12,500 of the purchase price. As such, a base-spec Tesla Model S increased in price from $75,000 with incentives, to $130,000 without them.
However, Tesla has remained optimistic despite the change in policy. “Tesla welcomes government policies that support our mission and make it easier for people to buy electric vehicles,” it said in a statement. “However, our business does not rely on it. At the end of the day, when people love something, they buy it.”
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