Tesla compensates for the end of EV subsidies in Germany

Credit: Tesla Asia/X

Tesla announced plans to compensate for electric vehicle (EV) subsidies in Germany after the government abruptly ended the incentives program for EVs. The Texas-based automaker said it would also maintain its manufacturer’s share of €2,250 in its new Model 3 and Model Y orders, starting December 18 to 31. 

Model Y prices in Germany before Tesla’s compensation are as follows:

  • Model Y RWD – €44,890
  • Model Y Long Range – €54,990
  • Model Y Performance – €60,990

Below are the Model 3 prices in Germany before Tesla’s compensation: 

  • Model 3 RWD – €42,990
  • Model 3 Long Range – €51,990

Before the end of the EV subsidy program in Germany, customers would get a discount of €6,750, which is split between the government and the manufacturer. The automaker bears €2,250 worth of the discount. Moving forward, Tesla will handle the entire €6,750 EV subsidy. 

In a press release dated December 16, Germany’s Federal Ministry for Economic Affairs and Climate Protection (BMWK) announced the end of its EV subsidy program. 

BMWK stated the following:

“As part of the negotiations on the Climate and Transformation Fund (KTF), it was decided on December 13, 2023, to end support through the environmental bonus as soon as possible. As of December 17, 2023, no new applications for the environmental bonus can be submitted to the Federal Office of Economics and Export Control (BAFA). The background is the implementation of the Federal Constitutional Court’s ruling, as a result of which 60 billion euros will be withdrawn from the KTF. Therefore, the KTF’s economic plan for 2024 has to be redrafted, and fewer resources are available to it.”

BMWK noted that it would stop accepting new applications for the EV subsidy program on December 17. The applications BMWK accepted up to December 17 would still be processed and approved. 

BMWK’s EV subsidy program has paid out €10 million in EV subsidies since 2016, covering 2.1 million electric vehicle purchases. The department considers its EV subsidy program to be successful. 

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Tesla compensates for the end of EV subsidies in Germany
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