The German government announced on Tuesday its new plan of financial incentives for electric vehicle purchases. Drivers will no longer receive the same amounts they did previously for purchasing electric cars, as Germany announced it would reduce the amount of money it gives consumers for switching to sustainable powertrains.
German politicians said in December that they planned to reduce the incentive program to vehicles that “demonstrably have a positive climate-protection effect,” the Associated Press said.
Conversations regarding the potential elimination of these subsidies continued into late last month when German Finance Minister Christian Lindner said it may be time to eliminate the programs.
We simply cannot afford misguided subsidies anymore,” Lindner said, arguing that incentives cost the government billions of dollars.
Starting in January 2023, car buyers will receive €4,500 for EVs with a list price of up to €40,000. Vehicles that are listed at prices between €40,000 and €65,000 will qualify for a €3,000 incentive. The program will change once again the following January, as the first month of 2024 will see the elimination of incentives for any vehicle price at €45,000 and over. €3,000 rebates will be given for vehicles priced up to €45,000.
Funding could also be capped, according to reports from German media outlets. After the €3.4 billion set aside for 2023 and 2024 is exhausted, the program will be terminated altogether.
The changes are not only affecting financial stipulations for customers. In fact, starting September 2023, incentives will only be available for private individuals. There are ongoing discussions that small businesses and charities may be exempt from this rule and could still qualify for the incentives, but businesses will not be eligible.
State-sponsored EV subsidy programs will eventually need to be phased out. Early on, subsidy programs are a great way for new products to gain substantial momentum and encourage customers to purchase them. However, EVs are more considered by consumers now more than ever, and the reasons for owning an electric powertrain are relatively specific to each owner. While the subsidy programs have helped get the EV transition off the ground, German politicians realize people will likely continue to buy sustainable vehicles, even without financial help from the government.
Federal Minister for Economic Affairs and Climate Action Robert Habeck said EVs are becoming “more popular than ever and will need no state subsidies in the foreseeable future.”
In the United States, government-sponsored EV rebates cap at 200,000 units per manufacturer. Tesla, General Motors, and Toyota have reached that threshold and no longer qualify for federal incentives.
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Tesla is breaking even its own rules to cap off an intense Q3
Tesla is pulling out all the stops to have a strong Q3 as the EV tax credit will phase out.

Tesla is breaking its own rules by advertising on various platforms in an effort to sell as many cars as possible before the end of the $7,500 electric vehicle tax credit.
Tesla has had a very polarizing perspective on advertising. Over the years, it has taken on different attitudes toward spending any money on marketing. It has instead put those dollars into research and development to make its vehicles more advanced.
Back in 2019, Tesla CEO Elon Musk talked about the company advertising its vehicles and energy products:
Tesla does not advertise or pay for endorsements. Instead, we use that money to make the product great. https://t.co/SsrfOq1Xyc
— Elon Musk (@elonmusk) May 19, 2019
In 2021, in response to analyst Gary Black, who has pushed for Tesla to have a PR or marketing department, Musk said:
Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product.
I trust the people.
— Elon Musk (@elonmusk) April 27, 2021
However, this did not hold as Tesla’s strategy for the long haul. While Musk did resist advertising for a long time, Tesla started placing ads on platforms like X, Google, and YouTube several years back. It’s pretty rare that Tesla pushes these ads, however.
Tesla launches advertising on X in the U.S., expanding ‘small scale’ strategy outlined by Musk
The company’s stance on setting aside capital for advertising seems to be circumstantial. Right now, it is working to sell as many vehicles as it can before the tax credit comes to a close.
As a result, it is pushing some ads on YouTube:
$TSLA is starting to advertise on YouTube. pic.twitter.com/1cwO2KNzJm
— Cole Grinde (@GrindeOptions) August 15, 2025
It’s a move that makes sense considering the timing. With just six weeks roughly left in the quarter, Tesla is going to work tirelessly to push as many cars into customer hands as possible. It will use every ounce of effort to get its products on people’s screens.
Tesla counters jab at lack of advertising with perfect response
Throw in one of the many incentives it is offering currently, and there will surely be some takers.
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Tesla rival’s CEO makes shock suggestion to customers about Model Y
“The Model Y is a great car, and Tesla also announced a number of promotions yesterday, so you might want to consider it.”

Tesla rival Xiaomi is experiencing demand that is off-the-charts with its new YU7 crossover, which competes with the Model Y. The company’s CEO has stated that demand is truly outpacing what it can build, and that customers in limbo should consider the Model Y because “it’s a great car.”
The Xiaomi YU7 has already gained an incredible number of orders so far. Its launch a few months ago had consumers busting down doors to place an order before others, and demand has been so high that customers will wait, on average, between 56 and 59 weeks for delivery.
Within 18 hours, Xiaomi received about 240,000 orders, CarScoops reported. Some customers are truly interested in the vehicle, but cannot wait the extended period to take delivery as they might need a car now.
Xiaomi CEO Lei Jun said on social meida that there are other cars out there that would be suitable as a replacement to the YU7:
“If you need to buy a car quickly, other China-produced new energy vehicles are pretty good.”
He explicitly mentioned the Model Y, Xpeng G7, and Li Auto i8.
Regarding the Model Y, he said:
“The Model Y is a great car, and Tesla also announced a number of promotions yesterday, so you might want to consider it.”
The Model Y has been the best-selling car in the world over the past two years, and it still leads in many markets as the most sought-after EV. However, in China, there are so many formidable competitors that customers are seemingly going for whatever they can get to first.
Of course, a car is a car, but Tesla has gained a more notable reputation for its industry-leading tech and driver assistance systems, including City Autopilot, which has been used in China for a few months now.
Tesla China owners share first impressions of FSD-style “City Autopilot”
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Tesla offers tasty Supercharging incentive as Q3 push continues

Tesla is offering a tasty Supercharging incentive on inventory Model 3 units in Canada as it continues to push sales in the third quarter.
In the United States, Tesla is preparing for the end of the $7,500 electric vehicle tax credit. While it is offering a multitude of incentives in the U.S. to help push sales of its vehicles before the credit goes away, it is not saving the deals for Americans exclusively.
Yesterday, the company announced it is now offering Free Supercharging for life on all Model 3 inventory in Canada, a massive incentive for those who would use the vehicle as a daily driver:
Unlimited road trips through Canada
Free Supercharging now on all Model 3 inventory 🇨🇦
— Tesla North America (@tesla_na) August 15, 2025
The deal would normally only apply to Superchargers located in Canada, meaning if a Canadian drove over the border into the United States and Supercharged, they would have to pay for it.
However, Tesla also confirmed that the charging deal would extend to the U.S. Canadians will be able to drive across the U.S. and Supercharge for free for the life of the vehicle.
Free Supercharging is such a great perk because the money an owner saves on charging factors directly into what they are saving if they were to own a gas car. While Supercharging and home charging are, on average, cheaper than filling up with gas, the savings are not massive.
When Supercharging is free, it can save consumers hundreds of dollars per month, especially if they plan to use the Tesla for their daily commute. Some people could fill their gas cars up two times a week to get to work, spending $80-$100 every five days on gas.
Tesla has been using incentives like this to push vehicles into customers’ hands. Q3 could be one of the best three-month spans in recent memory with the push it is making.
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