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Tesla Sales in Hong Kong Dry Up After Gov't Drops Tax Break (axios.com)

Posted by msmash on from the introducing-the-gov't dept.

Tesla couldn't sell a single car in Hong Kong in April after the government dropped a tax break for electric cars on April 1, the Wall St Journal reports citing government data. From the report: "as a result of the new policy, the cost of a basic Tesla Model S four-door car in Hong Konghas effectively risen to around $130,000 from less than $75,000." There were 2,939 Tesla's registered in Hong Kong as of April. Further reading: Nobody in Hong Kong wants a Tesla anymore.

6 of 103 comments (clear)

  1. Or by Anonymous Coward · · Score: 5, Insightful

    Everyone who wanted one in the short term snapped them up right before the tax went into effect.

    1. Re:Or by Albanach · · Score: 4, Insightful

      Exactly what the article says - there were five times as many registrations in March (the month before the rule went into effect) as in February. Hardly surprising that, when they did a half year worth of business in a month, they now see a decline.

      For some other manufacturers, a decline to zero might be more concerning. I expect in the current Tesla market with only luxury vehicles, the vast majority of customers don't need to wait one more paycheck to afford the purchase.

  2. It is range anxiety! by 140Mandak262Jamuna · · Score: 5, Funny

    Most Hong Kong residents would not buy a car unless it can go completely across the entire country at least five times in one full charge or full tank of gas. No way Tesla could do it. Tesla might sell in a small place like USA but on a large country like Hong Kong, no way it would sell.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    1. Re:It is range anxiety! by kaka.mala.vachva · · Score: 4, Funny

      Whoosh! That's the sound of the new Tesla flying electric vegan ICanHazCheezburger loving car passing overhead.

  3. Cars just sold before the price went up by Anonymous Coward · · Score: 4, Insightful

    From the article
    "There were 2,939 first-time Tesla registrations in March just before the new tax rules kicked in, around five times that of the number in February."
    everybody remotely considering buying one, just bought them before the price went up. Check back in six months to a year to see what the real effect is.

  4. Clarification of "Tax Break" by tempo36 · · Score: 4, Informative

    When most US readers read "Tax Break" they think that someone bought a car that was priced "X" and instead, paid "X-Y" where Y is some subsidy the Government offers...or alternatively they imagine that ALL cars cost "X+Y" where Y is a uniform tax. That's not the case in Hong Kong. In Hong Kong, a car that is imported from overseas is subject to a First Registration tax, that tax STARTS at 40% of the car's value and goes up from there "X+0.4X". This is a tax only on imported vehicles and previously all EV were exempt from it which put Tesla (and other imported EV) on level playing field with domestic Hong Kong vehicles. But that exemption has been removed for EV over a certain threshold, of which Tesla lands above. So now Tesla costs "X+Y" where Y is a tax that no domestic vehicles have to pay. So yes, Tesla is on an even playing field with other imports, but not with all other cars.

    So the folks saying "Ha! See, Tesla can't compete with other cars without a special exemption!" are ignoring that Tesla is now working at a handicap, not a level playing field.

    As others have pointed out, it's also likely that anyone who had the spare cash laying around who was planning on buying a Tesla, just did so prior to this phase out. People with lots of money aren't COMPLETELY oblivious to price fluctuations...especially when announced in advance.