Model S Does Not Exceed Price Ceiling, Again on the Subsidy List of German BAFA

The German state agency has agreed to once again grant subsidies to customers for Tesla vehicles, thereby ending the dispute with the American company over whether its Model S is too expensive to be included on the list.

The German Federal Office for Economic Affairs and Export Control (BAFA) announced on its website that Tesla was reinstated on March 6 to the list of electric vehicles for which customers can apply for subsidies.

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The agency had excluded Tesla vehicles from the list last December as customers could not order a version of the Model S without additional equipment that raised the price above the established limit of €60,000. At that time, Tesla denied that versions of the Model S without additional equipment were unavailable to customers.

– The manufacturer has proven through an independent assessment that the base version of the Model S is available on the market for less than €60,000, quoted the German daily Die Welt in a statement from BAFA on Thursday.

They emphasized that they are reviewing previously approved subsidy payment requests as it is unclear whether Tesla had previously complied with the price limit.

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Germany launched a €1 billion incentive program for the purchase and use of electric vehicles in 2016, partially funded by the German automotive industry. A price ceiling was also set to exclude expensive models.

Under this program, customers receive €4,000 for the purchase of an electric vehicle and €3,000 for hybrid models.