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Teslas are convincing some governments to lower EV taxes

The Tesla Model 3. (Credit: Tesla)

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Tesla’s electric cars are in high demand across the world. However, with increased demand comes a high price tag in some countries, and governments are combating the astronomical cost of electric vehicles due to taxes in an attempt to increase the number of EVs on the road.

On Monday, a panel presented numerous recommendations to the Danish government on how the prices of electric cars could be lowered. Some suggestions included lowering mandatory taxes like registration on EVs, higher fuel prices for combustion engines, and higher road taxes for vehicles that use gas as a source of fuel.

Electric vehicle taxes in Denmark have undoubtedly stopped some citizens from purchasing eco-friendly cars, as prices soar through the roof when these fees are applied. The mandatory taxes are among the highest in the world for electric cars, even though Denmark has long fought for the title of one of the world’s most environmentally friendly countries.

The Model 3 Long Range All-Wheel Drive, for example, will cost Danish citizens nearly $100,000. More than 20% of that cost comes from taxes, according to Berlingskea Danish media outlet.

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Denmark collects about $8 billion in taxes annually from the sale of cars. However, a majority of parliament members state they would be willing to accept less revenue from taxes on electric cars if it meant they would be more affordable for citizens to drive.

The head of the panel who presented the argument is Anders Eldrup, a former CEO at Orsted, an energy utility company.

“We need to change the way we think about car prices,” Eldrup said, according to Automotive News Europe. “Electric cars might be more expensive, but can be cheaper in terms of overall costs.”

Tesla is working to make its electric vehicles, which lead the industry in range and performance, cheaper for consumers. The company can do this through increased battery cell manufacturing, which has been a central focus for several years.

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Denmark, on the other hand, has worked to cut carbon emissions by 70% by 2030. In June, the country’s government came to an agreement that emissions needed to be sliced to combat climate change. Other countries around the world have their own goals for cutting carbon emissions down by a specific date.

Electric cars could play a substantial factor in lowering emissions levels from the environment. But before that can be done, the vehicles need to be affordable for citizens to buy. Removing the taxes will increase the likelihood that consumers will buy the cars. In turn, emissions levels will decrease substantially with more electric vehicles on the road.

Denmark’s parliament will hold a discussion about the possibility of revising current tax laws in the country that apply to electric vehicles soon.

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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 China posts strong February wholesale growth at Gigafactory Shanghai

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

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Credit: Grace Tao/Weibo

Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.

The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.

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Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.

Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.

The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.

Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.

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Tesla Model Y L spotted on transport trucks in Australia

One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier. 

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Tesla’s upcoming Model Y L has been spotted on transport trucks in Australia. Sightings of the six-seat extended wheelbase Model Y variant have been reported on social media platform X by members of the Australian Tesla community.

One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier. 

The sighting follows earlier observations by Tesla enthusiasts in Sydney, where a covered vehicle believed to be a Model Y L was spotted at a Supercharger.

The Sydney sighting drew attention after observers noted that the vehicle’s tare weight appeared to match the ADR approval listing for the Model Y L, suggesting it could indeed be the extended wheelbase variant of the electric SUV.

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Tesla has previously confirmed that the Model Y L will launch in Australia and New Zealand in 2026. The confirmation was reported by techAU following a media release from Tesla Australia and New Zealand.

The Model Y L expands the existing Model Y lineup with seating for six passengers. The vehicle features a longer body compared with the standard Model Y in order to accommodate a spacious second and third row.

Tesla has opted for a 2-2-2 seating configuration instead of a traditional seven-seat layout for the Model Y L. The design includes two individual seats in the middle row to provide easier access to the third row and additional passenger space.

Tesla Australia and New Zealand has also stated that the Model Y L will be covered under the company’s updated warranty structure beginning in 2026.

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Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.

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Elon Musk shares timeframe for X Money early public access rollout

X Money is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.

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Credit: UK Government, CC BY 2.0 , via Wikimedia Commons

Elon Musk has stated that X Money, the digital payments system being developed for social media platform X, is expected to enter early public access next month. 

The update was shared by Musk in a post on X. “𝕏 Money early public access will launch next month,” Musk wrote in his post.

As noted in a Reuters report, X Money is being developed as a digital payment service that’s directly integrated into the X platform. 

The system is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.

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Musk has previously discussed plans to introduce payments and financial services as part of X’s broader development.

Since acquiring the platform in 2022, Musk has discussed expanding X to include a range of services such as messaging, media, and financial tools.

Elon Musk has shared his goal of transforming X into an “everything app.” During a previous podcast interview with members of the Tesla community, Musk mused about turning X into something similar to China’s WeChat, which allows users to shop, pay, communicate, and perform a variety of other tasks.

“In China, you do everything in WeChat… it’s kickass… Outside of China, there’s nothing like it, people live on one app. My idea would be like how about if we just copy WeChat,” Musk joked at the time.

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To prepare for the rollout of X Money, X has partnered with payment company Visa to support the development of payment services for the platform’s users. The move could allow X to tap into the growing demand for digital and in-app financial transactions as the company builds additional services around its existing user base.

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