Tesla sales stopped dead in Hong Kong after a tax break for electrified cars was scrapped
- Jul. Ten, 2017, Two:20 AM
- Nineteen,341
The Hong Kong government’s decision to scrap a tax break for electrified vehicles has had a dramatic effect on sales of Tesla cars in the city, according to The Wall Street Journal.
Data analysis from The Journal has shown that zero fresh Tesla Model S sedans and Model X SUVs were registered with the transport department in April, after the vehicle-registration tax waiver for electrics was discontinued at the embark of that month.
Following that, just five privately wielded electrical cars were registered in May.
The Journal reported a sales surge just before the April one rule switch, with Two,939 Tesla vehicles registered in March and almost Trio,700 coming in the department’s books for the very first quarter of 2017. The end of the tax break was announced in February.
A Tesla representative told Business Insider that albeit the company welcomed government policies making "it lighter for more people to buy electrified vehicles," the company was not dependent on tax concessions for its livelihood.
"In China, for example, we’ve tripled our revenue from two thousand fifteen to two thousand sixteen despite a massive tariff and no incentives," the representative said. "At the end of the day, when people love something, they buy it.
"Hong Kong remains a significant market for Tesla, and we proceed to sell cars there each quarter. When the Hong Kong government diminished the tax exemption for electrified vehicles and enhanced the cost of our cars by almost 100%, it’s to be expected that request will be impacted in the period instantaneously following the switch, particularly because of the large number who bought just prior to the switch being implemented."
Tesla’s global sales have somewhat mirrored the fluctuation in fortunes in Hong Kong. The very first quarter of the year witnessed the electric-car maker have its best period ever, shipping out 25,000 units and sending its share price rocketing upward to surpass Ford and close in on General Motors in market capitalization. Then for the 2nd quarter, global sales fell to 22,000.
Tesla just last week announced the very first batch of its cheaper Model three cars would be released at the end this month. The $35,000 vehicle may be dampening appetite for the far more expensive existing models.
The Hong Kong practice also shows how sensitive electric-vehicle sales are to government incentives for cleaner transport technology. The region has only 7.Three million people, but Fox Business reports it is a significant market for luxury cars.
The Tesla representative said the company didn’t hold long-term concerns over sales in Hong Kong.
"Tesla absolutely believes that the Hong Kong market will proceed to be very strong over the long term because it’s clear that the people in Hong Kong love our cars."
Read more at The Wall Street Journal »
Get the latest Tesla stock price here.
Read the original article on Business Insider Australia. Copyright 2017. Go after Business Insider Australia on Twitter.
Tesla sales stopped in Hong Kong after electrified car tax break scrapped – Business Insider
Tesla sales stopped dead in Hong Kong after a tax break for electrical cars was scrapped
- Jul. Ten, 2017, Two:20 AM
- Nineteen,341
The Hong Kong government’s decision to scrap a tax break for electrified vehicles has had a dramatic effect on sales of Tesla cars in the city, according to The Wall Street Journal.
Data analysis from The Journal has shown that zero fresh Tesla Model S sedans and Model X SUVs were registered with the transport department in April, after the vehicle-registration tax waiver for electrics was discontinued at the commence of that month.
Following that, just five privately possessed electrified cars were registered in May.
The Journal reported a sales surge just before the April one rule switch, with Two,939 Tesla vehicles registered in March and almost Trio,700 coming in the department’s books for the very first quarter of 2017. The end of the tax break was announced in February.
A Tesla representative told Business Insider that albeit the company welcomed government policies making "it lighter for more people to buy electrical vehicles," the company was not dependent on tax concessions for its livelihood.
"In China, for example, we’ve tripled our revenue from two thousand fifteen to two thousand sixteen despite a massive tariff and no incentives," the representative said. "At the end of the day, when people love something, they buy it.
"Hong Kong remains a significant market for Tesla, and we proceed to sell cars there each quarter. When the Hong Kong government diminished the tax exemption for electrical vehicles and enhanced the cost of our cars by almost 100%, it’s to be expected that request will be impacted in the period instantly following the switch, particularly because of the large number who bought just prior to the switch being implemented."
Tesla’s global sales have somewhat mirrored the fluctuation in fortunes in Hong Kong. The very first quarter of the year eyed the electric-car maker have its best period ever, shipping out 25,000 units and sending its share price rocketing upward to surpass Ford and close in on General Motors in market capitalization. Then for the 2nd quarter, global sales fell to 22,000.
Tesla just last week announced the very first batch of its cheaper Model three cars would be released at the end this month. The $35,000 vehicle may be dampening appetite for the far more expensive existing models.
The Hong Kong practice also shows how sensitive electric-vehicle sales are to government incentives for cleaner transport technology. The region has only 7.Trio million people, but Fox Business reports it is a significant market for luxury cars.
The Tesla representative said the company didn’t hold long-term concerns over sales in Hong Kong.
"Tesla absolutely believes that the Hong Kong market will proceed to be very strong over the long term because it’s clear that the people in Hong Kong love our cars."
Read more at The Wall Street Journal »
Get the latest Tesla stock price here.
Read the original article on Business Insider Australia. Copyright 2017. Go after Business Insider Australia on Twitter.
Tesla sales stopped in Hong Kong after electrical car tax break scrapped – Business Insider
Tesla sales stopped dead in Hong Kong after a tax break for electrical cars was scrapped
- Jul. Ten, 2017, Two:20 AM
- Nineteen,341
The Hong Kong government’s decision to scrap a tax break for electrical vehicles has had a dramatic effect on sales of Tesla cars in the city, according to The Wall Street Journal.
Data analysis from The Journal has shown that zero fresh Tesla Model S sedans and Model X SUVs were registered with the transport department in April, after the vehicle-registration tax waiver for electrics was discontinued at the begin of that month.
Following that, just five privately possessed electrical cars were registered in May.
The Journal reported a sales surge just before the April one rule switch, with Two,939 Tesla vehicles registered in March and almost Three,700 injecting the department’s books for the very first quarter of 2017. The end of the tax break was announced in February.
A Tesla representative told Business Insider that albeit the company welcomed government policies making "it lighter for more people to buy electrical vehicles," the company was not dependent on tax concessions for its livelihood.
"In China, for example, we’ve tripled our revenue from two thousand fifteen to two thousand sixteen despite a massive tariff and no incentives," the representative said. "At the end of the day, when people love something, they buy it.
"Hong Kong remains a significant market for Tesla, and we proceed to sell cars there each quarter. When the Hong Kong government diminished the tax exemption for electrical vehicles and enhanced the cost of our cars by almost 100%, it’s to be expected that request will be impacted in the period instantaneously following the switch, particularly because of the large number who bought just prior to the switch being implemented."
Tesla’s global sales have somewhat mirrored the fluctuation in fortunes in Hong Kong. The very first quarter of the year witnessed the electric-car maker have its best period ever, shipping out 25,000 units and sending its share price rocketing upward to surpass Ford and close in on General Motors in market capitalization. Then for the 2nd quarter, global sales fell to 22,000.
Tesla just last week announced the very first batch of its cheaper Model three cars would be released at the end this month. The $35,000 vehicle may be dampening appetite for the far more expensive existing models.
The Hong Kong practice also shows how sensitive electric-vehicle sales are to government incentives for cleaner transport technology. The region has only 7.Three million people, but Fox Business reports it is a significant market for luxury cars.
The Tesla representative said the company didn’t hold long-term concerns over sales in Hong Kong.
"Tesla absolutely believes that the Hong Kong market will proceed to be very strong over the long term because it’s clear that the people in Hong Kong love our cars."
Read more at The Wall Street Journal »
Get the latest Tesla stock price here.
Read the original article on Business Insider Australia. Copyright 2017. Go after Business Insider Australia on Twitter.
