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Tesla, EV makers leave gas cars in the dust with new German stimulus bill

(Credit: CrAzYDr1veR/YouTube)

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Tesla and other electric vehicle manufacturers who have a presence in Germany are poised to benefit from the country’s new stimulus bill that is worth €130 million. The bill offers specific incentives for sustainable vehicles, while no benefits are provided for cars equipped with the internal combustion engine.

The current EV incentive is €3,000, but German officials plan to double that figure to €6,000 if the car costs less than €40,000 brand new. Also, adjusted tax benefits for EVs are now available to any vehicle that costs €60,000. Previously, the limit was €40,000.

German state governments that host automotive manufacturers initially proposed incentives of €3,000 for internal combustion engine cars, and €4,000 for electric, hybrid, and fuel cell vehicles, E Auto Info reported. Another €1,000 would be given to anyone who scrapped a gas-powered car, with an additional €1,000 if an EV was purchased after getting rid of the petrol-powered vehicle.

This proposal was declined, and Germany favored an incentivized system that allowed electric vehicle owners to have more benefits. Meanwhile, gas-powered car owners would hold no financial benefit driving their vehicles. With this, the German government appears to be encouraging EV ownership by offering incentives for driving Earth-friendly automobiles.

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The only incentive in the new stimulus bill that would benefit drivers of ICE vehicles is the lowering of Value Added Tax, or VAT. This has been decreased from 19% to 16%, but this incentive also applies to electric cars. To put this into perspective, a 3% drop in VAT and a €6,000 EV incentive would bring the cost of the Tesla Model 3 Standard Range+ from €40,990 to €36,881 after taxes.

Ultimately, Tesla stands to benefit significantly from the reformed stimulus package.

Tesla is currently in the process of building its Giga Berlin facility. As of June 3, construction crews on the site have laid the first layers of concrete, and the groundbreaking of the facility is underway.

Giga Berlin will produce 500,000 vehicles annually. With this number of cars rolling out of the facility, Europe will have a dedicated Tesla production plant in the region, alleviating the need for vehicles to be imported.

German citizens stand to benefit the most from Giga Berlin. Not only is the Gigafactory located in the country, but the government incentive plan will benefit consumers who choose to drive electric cars. Not only will this move stand to help drivers, but Tesla will likely see an increase in demand due to the tax breaks and government incentives.

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The full list of the stimulus package’s benefits are listed below:

  • Electric vehicle tax exemption prolonged from ending in 2025 to end 2030
  • Increase of vehicle tax for CO2 heavy vehicles
  • A decrease in electricity cost to consumers and business
  • Support of the car industry (including suppliers) R&D of 2 billion in the next two years (this is general, includes ICE)
  • Support of fleet electrification for social NGOs worth €200 million
  • Support of EV R&D, charging infrastructure and battery manufacturing worth 2.5 billion euros (plan to require every gas station to have charging points)
  • Program to electrify commercial and public bus and truck fleets worth 1.2 billion until the end of 2021, including a subsidy for electric buses and their charging infrastructure.
  • Lowering of VAT from 19% to 16% for the second half of 2020
  • Increase of EV subsidy from €3,000to €6,000 until the end of 2021

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla eyes two new states for Robotaxi

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Credit: @TerrapinTerpene/X

Tesla has officially shown that it is eyeing two new states for Robotaxi operation in the U.S., as it hopes to add the new areas to its ever-growing list of places where the suite is either active or in the testing phase.

Tesla first launched its Robotaxi suite in Austin, Texas, in late June. It expanded the suite to the San Francisco Bay Area just a month later. Since then, it has not launched any public rides in any other states, but it has gained several approvals for early testing.

Tesla officially launches Robotaxi service with no driver

In preparation for operation in new states, Tesla routinely lists job postings on its Careers website, which helps align potential employees with opportunities ahead of regulatory approvals. This is a strategy that allows Tesla to start operations immediately upon licensing for testing.

Tesla started hiring Vehicle Operators for Autopilot in Arizona and Nevada months before the company gained any sort of approvals from state governments for Robotaxi. However, those approvals eventually came in the form of testing licenses, which allow the company to perform validation ahead of its public launch.

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Tesla begins validating Robotaxi in a new area, hinting at expansion

Now, Tesla has posted job listings for Vehicle Operators for Autopilot in two new states: Colorado and Illinois. The Colorado job listing is located in Aurora, a suburb of Denver. Tesla is looking for Robotaxi operators in Chicago as well.

These postings hint toward Tesla’s continuing efforts to expand Robotaxi to new places. Earlier this year, CEO Elon Musk said the company would like to have Robotaxi available to at least half of the U.S. population.

It has expanded significantly since its initial launch in late June, but it is still a far way off from where Tesla would like it to be by year’s end.

So far, Tesla has job listings for Autopilot Vehicle Operators in Arizona, California, Texas, Florida, Colorado, Nevada, and Illinois.

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Tesla’s advertising strategy takes a drastic turn, but some are questioning it

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Credit: Tesla

Tesla’s advertising strategy has taken a drastic turn as the company’s upcoming Shareholder Meeting will feature perhaps the most crucial vote in its history: the approval of CEO Elon Musk’s new pay package.

For years, the issue of Tesla’s advertising and marketing strategy has been a major point of conversation for investors in fans. It seems to be split right down the middle, with half wanting Tesla to set aside some money for advertising. The other half, just the opposite.

Tesla has been transparent that the money it would spend on advertising, marketing, and public relations is better set aside for the development of future products.

However, it has recently adopted a different tone in advertising, pushing some commercials on social media platforms like X and Instagram.

For the first time, an ad was seen on streaming services like Paramount+, but it wasn’t promoting Tesla’s products directly. Instead, it was more of a message for shareholders to vote on Musk’s pay package, something Tesla feels is a necessity:

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“The future of Tesla is in your hands,” the ad reads at the end. It seems as if Tesla is taking whatever steps it needs to accomplish the task of getting Musk a new pay package and retaining him as its CEO.

On September 5, Tesla officially outlined its plans for a CEO Performance Award for Musk. It would require him to lift Tesla’s market capitalization to about $8.5 trillion, up from the $1.36 trillion it sits at today.

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Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

It is obvious that Tesla is really hoping to get the pay package passed and is willing to shift some of its budget to encourage shareholders to vote.

However, there are some interesting perspectives on the move, and it’s sort of strange to see Tesla not advertising its vehicles or products, but only its pay package that would get its CEO paid.

Some of those who saw the ad are questioning the strategy:

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Tesla begins validating Robotaxi in a new area, hinting at expansion

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Credit: Tesla

Tesla is validating Robotaxi in a new area, and as the company has continued to gain some additional permissions to begin testing in new states, it seems its Full Self-Driving-based ride-hailing project is moving toward a larger footprint.

Two Robotaxi units with LiDAR validation equipment were spotted in Gilbert, Arizona, recently, showing that Tesla is aiming to launch its ride-hailing service in the state soon:

Another unit was spotted in Tempe, Arizona:

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These types of validation vehicles have been spotted in several areas ahead of their launch as a public ride-hailing service for passengers. Tesla first launched Robotaxi in Austin, Texas, back in late June, and since then, it has expanded to the Bay Area of California.

However, Tesla has continued to attempt to expand Robotaxi to other areas as well, including Nevada and Arizona. It has also been working toward approvals in other states based on job postings, as Tesla is hiring for Autopilot Vehicle Operators in New York and Florida, as well.

The expansion of the Robotaxi ride-hailing service has been an effort that Tesla has been spending a lot of time on over the past few months. CEO Elon Musk said the expansion aims to bring Robotaxi to at least half of the U.S. population by the end of the year, but there is still plenty of work to be done.

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Tesla Robotaxi heads to a new major Texas city for the first time

Tesla did make its Robotaxi app public in recent months, allowing more members of the public to experience the suite for themselves, as long as they could get to Austin or the Bay Area.

In the coming months, it seems more apparent that Tesla will take a broader focus on expanding Robotaxi, especially with the fact that these validation vehicles are being spotted throughout different parts of the United States.

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