Tesla’s sales stall in Hong Kong as tax cracks end. Could the U.S. be next?
The inwards track on Washington politics.
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A Tesla Model S electrical car is seen at its dealership in Seoul. (Kim Hong-Ji/Reuters)
Tesla’s sales emerge to be stalling in Hong Kong.
According to data from the city’s transportation department that was analyzed and very first reported by the Wall Street Journal, not a single freshly purchased Tesla model was registered in April after the government in March announced switches to the tax benefits customers can get from buying the electrical cars.
The policy began April one and is expected to last until March 2018.
According to the Journal, the city capped the tax waiver at HK$97,500, which is $12,500 in the U.S. and is only applicable to very first time owners. Prior to the switch in policy, there were Two,939 first-time Tesla registrations in March and around five times that number in February.
Teslas already cost a lot more in China than the United States because of shipping and export costs, said Charlie Anderson, a senior research analyst at Dougherty & Co.
Without the tax benefit, it now costs HK$925,000 or $118,400 for a Tesla Model S in Hong Kong. Before, it cost HK$570,000 or $72,900 for the same model.
Anderson said that Tesla’s sales dip isn’t anything he hasn’t seen before and that registration statistics make it rough to get an a good pulse for the market.
“Just about every country has registration data, and I find it’s very hit and miss,” he said. “I think it’s most likely for sure the case that request has gone down from the tax incentive rolling off. It’s a classic case of elasticity of request. If a good costs more people are going to buy less of it.”
A Tesla spokesperson described the switch in Hong Kong as presenting “short-term challenges” and said the company “welcomes government policies that support our mission and make it lighter for more people to buy electrical vehicles, however, our business does not rely on it.”
The spokesperson went on to say “Hong Kong remains a significant market for Tesla and we proceed to sell cars there each quarter.”
Tesla faces a similar challenge in Denmark, where sales of electrified vehicles plunged 60.Five percent compared to the very first three months of 2016, according to European Automobile Manufacturers Association. Denmark had long spared the electrical car dealers from paying the one hundred eighty percent import tax on vehicles powered by a traditional car engine, but switched gears in fall two thousand fifteen to level the playing field. The country has since restored some of the subsidies, but the market still lags behind others.
Denmark’s neighbor Sweden has seen Tesla sales surge almost eighty percent in the same time framework where the company has a partnership with local electrified utility Skelleftea Kraft. The partnership offers Tesla Superchargers via the country with one hundred percent renewable energy and free charging at home — a boon to customers who otherwise would have to pay enlargened electrified bills.
But will Tesla soon face the same issue of diminished subsidies in the United States?
Tesla presently offers U.S. citizens a federal tax credit that toughly chops $7,500 off the sticker price of one of its models. So customers wanting to buy the company’s fresh more affordable Model Trio, which commenced production on Friday, would pay $27,500 compared to the retail price of $35,000. Some states suggest their own extra incentives.
But the federal tax incentive is designed to embark fading out once a car manufacturer sells its 200,000th electrical vehicle in the United States. Tesla has sold well over 100,000 cars and has toughly 400,000 reservations for the Model Three, according to Michelle Krebs, a senior analyst at AutoTrader, so a lot of those customers won’t be able to benefit from the tax incentive.
“We may face the same thing here in the U.S. because it’s not clear where tax credits will go,” Krebs said. “The challenge to Tesla is how to generate consumer requests without a tax credit. The tax credits have helped. But when they go away, what incentive is there for consumers to buy these cars? In California you get access to the HOV lines, but that might be going away.”
Tony Lim, an analyst at Kelley Blue Book previously told The Post that once Tesla eclipses the 200,000 car mark, the next calendar quarter will be the last quarter customers will be eligible for the total tax credit of $7,500. After that, it will be phased out over a 15-month period and fresh Tesla owners will be eligible for only fifty percent of the tax credit, and then twenty five percent, and then none.
Tesla’s sales stall in Hong Kong as tax violates end
Tesla’s sales stall in Hong Kong as tax cracks end. Could the U.S. be next?
The inwards track on Washington politics.
*Invalid email address
A Tesla Model S electrical car is seen at its dealership in Seoul. (Kim Hong-Ji/Reuters)
Tesla’s sales show up to be stalling in Hong Kong.
According to data from the city’s transportation department that was analyzed and very first reported by the Wall Street Journal, not a single freshly purchased Tesla model was registered in April after the government in March announced switches to the tax benefits customers can get from buying the electrical cars.
The policy embarked April one and is expected to last until March 2018.
According to the Journal, the city capped the tax waiver at HK$97,500, which is $12,500 in the U.S. and is only applicable to very first time owners. Prior to the switch in policy, there were Two,939 first-time Tesla registrations in March and around five times that number in February.
Teslas already cost a lot more in China than the United States because of shipping and export costs, said Charlie Anderson, a senior research analyst at Dougherty & Co.
Without the tax benefit, it now costs HK$925,000 or $118,400 for a Tesla Model S in Hong Kong. Before, it cost HK$570,000 or $72,900 for the same model.
Anderson said that Tesla’s sales dip isn’t anything he hasn’t seen before and that registration statistics make it rough to get an a good pulse for the market.
“Just about every country has registration data, and I find it’s very hit and miss,” he said. “I think it’s very likely for sure the case that request has gone down from the tax incentive rolling off. It’s a classic case of elasticity of request. If a good costs more people are going to buy less of it.”
A Tesla spokesperson described the switch in Hong Kong as presenting “short-term challenges” and said the company “welcomes government policies that support our mission and make it lighter for more people to buy electrical vehicles, however, our business does not rely on it.”
The spokesperson went on to say “Hong Kong remains a significant market for Tesla and we proceed to sell cars there each quarter.”
Tesla faces a similar challenge in Denmark, where sales of electrified vehicles plunged 60.Five percent compared to the very first three months of 2016, according to European Automobile Manufacturers Association. Denmark had long spared the electrified car dealers from paying the one hundred eighty percent import tax on vehicles powered by a traditional car engine, but switched gears in fall two thousand fifteen to level the playing field. The country has since restored some of the subsidies, but the market still lags behind others.
Denmark’s neighbor Sweden has seen Tesla sales surge almost eighty percent in the same time framework where the company has a partnership with local electrical utility Skelleftea Kraft. The partnership offers Tesla Superchargers via the country with one hundred percent renewable energy and free charging at home — a boon to customers who otherwise would have to pay enlargened electrical bills.
But will Tesla soon face the same issue of diminished subsidies in the United States?
Tesla presently offers U.S. citizens a federal tax credit that toughly chops $7,500 off the sticker price of one of its models. So customers wanting to buy the company’s fresh more affordable Model Trio, which embarked production on Friday, would pay $27,500 compared to the retail price of $35,000. Some states suggest their own extra incentives.
But the federal tax incentive is designed to commence fading out once a car manufacturer sells its 200,000th electrical vehicle in the United States. Tesla has sold well over 100,000 cars and has harshly 400,000 reservations for the Model Trio, according to Michelle Krebs, a senior analyst at AutoTrader, so a lot of those customers won’t be able to benefit from the tax incentive.
“We may face the same thing here in the U.S. because it’s not clear where tax credits will go,” Krebs said. “The challenge to Tesla is how to generate consumer requests without a tax credit. The tax credits have helped. But when they go away, what incentive is there for consumers to buy these cars? In California you get access to the HOV lines, but that might be going away.”
Tony Lim, an analyst at Kelley Blue Book previously told The Post that once Tesla eclipses the 200,000 car mark, the next calendar quarter will be the last quarter customers will be eligible for the utter tax credit of $7,500. After that, it will be phased out over a 15-month period and fresh Tesla owners will be eligible for only fifty percent of the tax credit, and then twenty five percent, and then none.
Tesla’s sales stall in Hong Kong as tax violates end
Tesla’s sales stall in Hong Kong as tax cracks end. Could the U.S. be next?
The inwards track on Washington politics.
*Invalid email address
A Tesla Model S electrified car is seen at its dealership in Seoul. (Kim Hong-Ji/Reuters)
Tesla’s sales emerge to be stalling in Hong Kong.
According to data from the city’s transportation department that was analyzed and very first reported by the Wall Street Journal, not a single freshly purchased Tesla model was registered in April after the government in March announced switches to the tax benefits customers can get from buying the electrified cars.
The policy commenced April one and is expected to last until March 2018.
According to the Journal, the city capped the tax waiver at HK$97,500, which is $12,500 in the U.S. and is only applicable to very first time owners. Prior to the switch in policy, there were Two,939 first-time Tesla registrations in March and around five times that number in February.
Teslas already cost a lot more in China than the United States because of shipping and export costs, said Charlie Anderson, a senior research analyst at Dougherty & Co.
Without the tax benefit, it now costs HK$925,000 or $118,400 for a Tesla Model S in Hong Kong. Before, it cost HK$570,000 or $72,900 for the same model.
Anderson said that Tesla’s sales dip isn’t anything he hasn’t seen before and that registration statistics make it raunchy to get an a good pulse for the market.
“Just about every country has registration data, and I find it’s very hit and miss,” he said. “I think it’s most likely for sure the case that request has gone down from the tax incentive rolling off. It’s a classic case of elasticity of request. If a good costs more people are going to buy less of it.”
A Tesla spokesperson described the switch in Hong Kong as presenting “short-term challenges” and said the company “welcomes government policies that support our mission and make it lighter for more people to buy electrified vehicles, however, our business does not rely on it.”
The spokesperson went on to say “Hong Kong remains a significant market for Tesla and we proceed to sell cars there each quarter.”
Tesla faces a similar challenge in Denmark, where sales of electrified vehicles plunged 60.Five percent compared to the very first three months of 2016, according to European Automobile Manufacturers Association. Denmark had long spared the electrical car dealers from paying the one hundred eighty percent import tax on vehicles powered by a traditional car engine, but switched gears in fall two thousand fifteen to level the playing field. The country has since restored some of the subsidies, but the market still lags behind others.
Denmark’s neighbor Sweden has seen Tesla sales surge almost eighty percent in the same time framework where the company has a partnership with local electrified utility Skelleftea Kraft. The partnership offers Tesla Superchargers via the country with one hundred percent renewable energy and free charging at home — a boon to customers who otherwise would have to pay enhanced electrified bills.
But will Tesla soon face the same issue of diminished subsidies in the United States?
Tesla presently offers U.S. citizens a federal tax credit that harshly chops $7,500 off the sticker price of one of its models. So customers wanting to buy the company’s fresh more affordable Model Trio, which embarked production on Friday, would pay $27,500 compared to the retail price of $35,000. Some states suggest their own extra incentives.
But the federal tax incentive is designed to commence fading out once a car manufacturer sells its 200,000th electrified vehicle in the United States. Tesla has sold well over 100,000 cars and has toughly 400,000 reservations for the Model Trio, according to Michelle Krebs, a senior analyst at AutoTrader, so a lot of those customers won’t be able to benefit from the tax incentive.
“We may face the same thing here in the U.S. because it’s not clear where tax credits will go,” Krebs said. “The challenge to Tesla is how to generate consumer requests without a tax credit. The tax credits have helped. But when they go away, what incentive is there for consumers to buy these cars? In California you get access to the HOV lines, but that might be going away.”
Tony Lim, an analyst at Kelley Blue Book previously told The Post that once Tesla eclipses the 200,000 car mark, the next calendar quarter will be the last quarter customers will be eligible for the total tax credit of $7,500. After that, it will be phased out over a 15-month period and fresh Tesla owners will be eligible for only fifty percent of the tax credit, and then twenty five percent, and then none.
Tesla’s sales stall in Hong Kong as tax cracks end
Tesla’s sales stall in Hong Kong as tax cracks end. Could the U.S. be next?
The inwards track on Washington politics.
*Invalid email address
A Tesla Model S electrified car is seen at its dealership in Seoul. (Kim Hong-Ji/Reuters)
Tesla’s sales emerge to be stalling in Hong Kong.
According to data from the city’s transportation department that was analyzed and very first reported by the Wall Street Journal, not a single freshly purchased Tesla model was registered in April after the government in March announced switches to the tax benefits customers can get from buying the electrical cars.
The policy began April one and is expected to last until March 2018.
According to the Journal, the city capped the tax waiver at HK$97,500, which is $12,500 in the U.S. and is only applicable to very first time owners. Prior to the switch in policy, there were Two,939 first-time Tesla registrations in March and around five times that number in February.
Teslas already cost a lot more in China than the United States because of shipping and export costs, said Charlie Anderson, a senior research analyst at Dougherty & Co.
Without the tax benefit, it now costs HK$925,000 or $118,400 for a Tesla Model S in Hong Kong. Before, it cost HK$570,000 or $72,900 for the same model.
Anderson said that Tesla’s sales dip isn’t anything he hasn’t seen before and that registration statistics make it raunchy to get an a good pulse for the market.
“Just about every country has registration data, and I find it’s very hit and miss,” he said. “I think it’s very likely for sure the case that request has gone down from the tax incentive rolling off. It’s a classic case of elasticity of request. If a good costs more people are going to buy less of it.”
A Tesla spokesperson described the switch in Hong Kong as presenting “short-term challenges” and said the company “welcomes government policies that support our mission and make it lighter for more people to buy electrical vehicles, however, our business does not rely on it.”
The spokesperson went on to say “Hong Kong remains a significant market for Tesla and we proceed to sell cars there each quarter.”
Tesla faces a similar challenge in Denmark, where sales of electrical vehicles plunged 60.Five percent compared to the very first three months of 2016, according to European Automobile Manufacturers Association. Denmark had long spared the electrical car dealers from paying the one hundred eighty percent import tax on vehicles powered by a traditional car engine, but switched gears in fall two thousand fifteen to level the playing field. The country has since restored some of the subsidies, but the market still lags behind others.
Denmark’s neighbor Sweden has seen Tesla sales surge almost eighty percent in the same time framework where the company has a partnership with local electrical utility Skelleftea Kraft. The partnership offers Tesla Superchargers via the country with one hundred percent renewable energy and free charging at home — a boon to customers who otherwise would have to pay enhanced electrical bills.
But will Tesla soon face the same issue of diminished subsidies in the United States?
Tesla presently offers U.S. citizens a federal tax credit that harshly chops $7,500 off the sticker price of one of its models. So customers wanting to buy the company’s fresh more affordable Model Trio, which embarked production on Friday, would pay $27,500 compared to the retail price of $35,000. Some states suggest their own extra incentives.
But the federal tax incentive is designed to commence fading out once a car manufacturer sells its 200,000th electrical vehicle in the United States. Tesla has sold well over 100,000 cars and has harshly 400,000 reservations for the Model Three, according to Michelle Krebs, a senior analyst at AutoTrader, so a lot of those customers won’t be able to benefit from the tax incentive.
“We may face the same thing here in the U.S. because it’s not clear where tax credits will go,” Krebs said. “The challenge to Tesla is how to generate consumer requests without a tax credit. The tax credits have helped. But when they go away, what incentive is there for consumers to buy these cars? In California you get access to the HOV lines, but that might be going away.”
Tony Lim, an analyst at Kelley Blue Book previously told The Post that once Tesla eclipses the 200,000 car mark, the next calendar quarter will be the last quarter customers will be eligible for the utter tax credit of $7,500. After that, it will be phased out over a 15-month period and fresh Tesla owners will be eligible for only fifty percent of the tax credit, and then twenty five percent, and then none.