Government

German Tesla Owners Forced To Pay Back Almost $5,000

So much for electric vehicle subsidies.

In order to get people to lower their emissions output, governments around the world have offered incentives to anyone who buys an electric vehicle. In the US, buyers of electric vehicles received a $7,500 tax credit, though Tesla has built enough vehicles that this number has now dropped to $3,750. German EV buyers receive a 4,000-Euro subsidy, but Automotive News Europe reports some Tesla owners are being forced to give it all back.

According to Automotive News Europe, the German government decided that Tesla vehicles are too expensive to qualify for the subsidy, and now owners are being forced to pay back roughly $4,650. Germany's Federal Office for Economic Affairs and Export Control says this decision will impact approximately 800 Tesla owners who purchased their cars before March 6. Another 250 owners who purchased their cars this year will no longer receive the subsidy.

Tesla responded by saying it will appeal the decision, and will cover the cost of the subsidy for owners until the issue is resolved. The German subsidy applies to any EV under 60,000 Euros, and the office took the Model S off the list when it learned that the least expensive 75D model is listed for 72,000 Euros. Tesla says a base model is also available, and have been delivered to German customers. Anyone who buys the base Model S after March 6 will still qualify for the subsidy, but many owners may still be forced to pay back thousands of euros.

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