Tesla Model S Buyers Forced To Return Nearly $5,000 In EV Incentives In Germany

In order to stimulate new car buyers to choose electric vehicles instead of ICE-powered cars, some governments around the world are offering EV incentives, through different programs.

In Germany, it’s called ‘umweltbonus’, or ‘environment reward’, and it’s limited to cars that cost less than €60,000 ($70,167). In theory, the Tesla Model S qualifies, as it has a base version offered from €58,000 ($67,828).

However, according to Electrive, local investigators found that the entry-level Tesla Model S never existed.

In the meantime though, the California-based automaker introduced a ‘real’ Model S for €58,000 ($67,828). But it was too late, as the electric car had been removed from the list of vehicles eligible for subsidies in Germany, and the company is now suspected of subsidy fraud by the country’s Federal Office for Economic Affairs and Export Control (BAFA).

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This means that those who purchased a Tesla Model S before March 6, 2018, in Germany, now have to pay back the incentives, which are worth €4,000 ($4,678), as their car was found to be too expensive for the program. Approximately 800 Model S owners are being affected by this problem, along with another 250 open applications from before the aforementioned date that have been declined.

Tesla is calling the decision “unjustified” in a statement made for Electrek, and “unfair” to their customers. “The fact that Tesla was included on the list, removed from the list, and then again added to the list is proof that this was a mistake. As our website demonstrates, anyone in Germany has always been able to order a base version Model S that was below the required price level, and we have delivered such cars to customers”, a spokesperson told the aforementioned publication.

As expected, Tesla will appeal the decision taken by BAFA, but not before covering the costs of the ‘environment reward’ for their customers. “We are appealing BAFA’s decision to take this action against our pre-March 2018 customers. To make sure our customers are not harmed by this decision, we will cover the cost of the bonus for them until the issue is resolved.”