July 9, 2017 7:14 p.m. ET
Tesla Inc.’s TSLA 1.35% sales in Hong Kong came to a standstill 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.
Not a single newly purchased Tesla model was registered in Hong Kong in April, according to official data from the city’s Transportation Department analyzed by The Wall Street Journal.
In March, shortly after the tax change was announced and ahead of the April 1 deadline, 2,939 Tesla vehicles were registered there—almost twice as many as in the last six months of 2016.
The end of the tax exemption “has really put the brakes on electric-vehicle adoption in Hong Kong,” said Mark Webb-Johnson, a founder of Charged Hong Kong, a group that promotes electric vehicles.
As a result of the new policy, the cost of a basic Tesla Model S four-door car in Hong Kong has effectively risen to around $130,000 from less than $75,000.
$55,000 USD per car in subsidies in Hong Kong.
$30,000 USD per car in subsidies in the US.
How much here?