A German government agency has removed Tesla from the list of electric cars eligible for subsidies, sparking a row with Tesla over whether its Model S sedan is too expensive to qualify for the program.
Tesla customers cannot order the Model S base version without extra features that push the car above the 60,000 Euro price limit, a spokesman for the German Federal Office for Economic Affairs and Export Controls (BAFA) said last Friday.
Germany last year launched the incentive scheme worth about 1 billion Euros, partly financed by the German auto industry, to boost electric-car sales. A price cap was included to exempt premium models.
Under the program, buyers get 4,000 Euros off their all-electric vehicle purchase and 3,000 Euros off plug-in hybrids. Tesla denied its cars were too expensive for the program.