As reported by The Wall Street Journal, no new Tesla Model S or Model X vehicles were registered in April and in May according to Hong Kong’s Transportation Department. In fact, there were just five new, privately owned electric vehicles registered in the whole Chinese territory.
In contrast, 2,939 units were registered in March as locals rushed to purchase the electric cars after the scrapping of the tax incentives was announced in February.
After the government announced that the tax would only be waived on the first $12,500 (S$17,264) of a new electric vehicle purchase price, prices of the a base Tesla Model S jumped from below $75,000 (S$103,589) to around $130,000 (S$179,554). Before this revised tax break was in place, tax for the registration of the a new electric vehicle was totally waived off.
Despite the drop in sales, Tesla is not concerned.
“Tesla welcomes government policies that support our mission and make it easier for more people to buy electric vehicles, however, our business does not rely on it. At the end of the day, when people love something, they buy it.”