Electric vehicle subsidies are ending in Germany abruptly, the government announced Saturday, a blow for Tesla (TSLA), Volkswagen (VWAGY), BMW (BMWYY), Stellantis (STLA) and more.
But Tesla stock was little changed Monday, off morning highs.
German’s coalition government, facing a budget crisis, ended the “environmental bonus” program as of Sunday, not Dec. 31 as planned.
Germany’s EV subsidy has been up to 4,500 euros ($4,909). Just a few days earlier, Berlin announced that the EV subsidy would not continue in 2024 at a reduced rate of 3,000 euros ($3,273).
As of Sept. 1, the EV subsidy expired for businesses and limited to private individuals. The business tax expiration spurred a big rush to buy EVs as well.
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