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After a tax incentive for electric cars was slashed in Hong Kong, new registrations of Teslas vehicles dropped from 2,939 to zero...
Hong Kong, though relatively small, is a significant outpost of luxury car buyers and trend setters. Its government had long waived its vehicle registration tax for newly purchased electric automobiles, adding to the attractiveness of Tesla’s cars.
Citing increased congestion of privately owned vehicles on its streets, the government said in February that it would be changing the policy so the tax would be waived only on the first 97,500 Hong Kong dollars (about US$12,500) of an electric car’s purchase price for individuals.
After the change came into effect on April 1, the cost of a basic Tesla Model S in Hong Kong effectively rose to around US$130,000 from less than US$75,000.
And the reaction - demand tumbled...
The Wall Street Journal reports that Tesla sales in Hong Kong plummeted after authorities slashed a tax break for electric vehicles on April 1, demonstrating how sensitive the company’s performance can be to government incentive programs. Official data from Hong Kong’s Transportation Department, analyzed by The Wall Street Journal, show that no newly purchased Tesla Model S sedans or Model X sport-utility vehicles were registered in April in the Chinese territory, and only five privately owned electric vehicles were registered in May.
Source - zerohedge