Tesla Model S buyers in Germany asked to pay back €4,000 EV incentive

Tesla Model S buyers in Germany asked to pay back €4,000 EV incentive

The Federal Office of Economics and Export Control (BAFA) in Germany is asking Tesla Motors Model S buyers who purchased their vehicles before March 2018 to pay back the €4,000 electric vehicle (EV) incentive which they had received from the government.

The move by BAFA is apparently an upshot of Tesla’s persistent issues with the German government over EV incentives.

In 2017, the access to a new €4,000 EV incentive was initially denied to Tesla buyers in the country because the negotiations between the German government and the country’s auto industry resulted in a cap on EVs with a starting price of less than €60,000.

To ensure that Model S becomes eligible for the incentives, Tesla unbundled a few standard features of the vehicle as an option, to bring down the base price of the Model S to €60,000. However, German car magazine Auto-Bild claimed in a report that potential Model S buyers could not purchase the vehicle without the options. Tesla, obviously, had refuted those claims.

In the wake of Tesla’s ongoing EV-incentive issues with the German government, the BAFA has now stated on its website that its talks with Tesla “to achieve a solution that would indemnify the customers” have been unproductive. It also added that “all Tesla customers who purchased the Tesla Model S before March 6, 2018” will have to pay back the €4,000 incentive. The move will affect nearly 800 to 1,050 Tesla owners in Germany.