Tesla Model S Qualifies For German Incentives Due To Creative Price Reduction

7 months ago by Steven Loveday 50

Tesla Model S

Tesla Model S

Germany’s incentive regulations in the past have prohibited the Tesla Model S and Model X from receiving the € 4,000 electric car discount, due to the vehicles exceeding the maximum price restriction.

Tesla’s vehicles are considered “premium” because they cost over € 60,000 – the maximum starting MSRP for incentive eligibility. When this program came into play, Tesla asserted that it was specifically set to assure that its products wouldn’t qualify for the discount. Since then, the company has been looking for ways to fall below the price cap.

Tesla's Store in Hamburg, Germany

Tesla Store in Hamburg, Germany

Tesla’s first attempt was through the application of software unlocked batteries. This brought the price down considerably, and customers could opt to pay a premium later to unlock the battery upgrade. However, it was still not possible for Tesla to undercut the price requirement and still make a profit.

With the new acquisition of Grohmann Engineering, and Elon Musk’s announcement of a Gigafactory 2 coming soon to a European location, Tesla needed to push harder to make the discount applicable.

Through some additional creative price reduction strategies, the Tesla Model S will now qualify for the discount. Unfortunately, it isn’t likely that German Model X consumers will ever be able to partake in the discount. However, the Model 3 will come out of the gate well within the price cap, even when nicely loaded.

In order to make the Model S qualify for the discount, Tesla unbundled some features. Making the Comfort Package an optional € 5,200, but available to ‘unlock’ after the purchase of the car.  The decoupling of the feature has now brought the Model S sedan’s starting pricing down to below what was needed to qualify (€ 60,000).

Meaning of course, that now customers can get the Model S with the discount, and then add back the package later. The ‘Comfort Package’ includes features such as folding mirrors, seat positions, navigation, and backup cameras.

Source: Smart Stock News

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50 responses to "Tesla Model S Qualifies For German Incentives Due To Creative Price Reduction"

  1. Alaa says:

    I don’t know why you are so excited about the German market. For all we know Putin might take all of the EU in the winter. Including the UK. Now that Donald wants to leave NATO. It is a fantastic opportunity for Putin to take the Baltic states and the rest of the EU. There is no force that can stop him. So this military vacuum will have to filled by the Russians!

    1. Rebel44 says:

      Complete nonsense – EU alone has more than enough troops to win defensive war* (hell, I doubt russians would be able to defeat Poland), besides Russia would go bankrupt about a month after starting such conflict.

      Russia is just a shadow of USSR – its still powerful, but not capable of winning any large scale offensive conventional war. Modern weapons make defensive warfare much easier, than it used to be.

      *EU has more than twice active military personal and more than 3 times bigger military budget.

    2. Another Euro point of view says:

      Really Off topic but feel the need to reply. My professional activities lead to work with many Russians those last 10 years and to travel to Russia. Basically Russians felt that what happened in Ukraine might have a link with the West and they felt somewhat threatened. Like if a pro-Russian force took control of Mexico to give you an example. Alaa, you do live in Egypt right ? Have you often met Russians ? If yes do you have person to person talk with them ? Lots of fantasies about Russians probably because few people get to know them. Should we leave them alone in their sphere of influence (that includes Syria) and try not to belittle them and all will be fine.

      1. zim says:

        The American Mainstream Media manufacturers views of Russia as the “bad guys” that our government hero’s must counter when in fact it is our government sticking it’s dick into the hornets nest.

        1. Boris says:

          If your government didn’t stick its **** anywhere, it would eventually hurt America too. Imagine Russia, China and Islamic militants running the show. It would be just more wars and instability. Be proud of where you live and that your country is in the best position to make a positive impact on our world, and yes, mistakes did happen and will happen.

      2. Boris says:

        First of all, please drop your silly nick, there is no such thing as American, European or Asian point of view. And second, so me living in Slovakia, I should just get used to the fact that I’m in Russian sphere of influence and get used to it? Who else would you say is in this sphere? Ukraine? Probably Estonia? Most likely? But I’m guessing Finland too right? What about Germany and France after NATO collapses?

      3. ffbj says:

        Garbage. Simply pro Russian propaganda. Syria their sphere of influence…trash. As a country they are being led by a crime syndicate headed by Putin.

      4. super390 says:

        But who gets to determine what is a rightful sphere of influence? Russia? America?

        And the fallacy of Putin claiming Great Powers with spheres of influence are peaceful is that, when he couldn’t get his way, he tried to help Trump in our election – not Mexico’s. He didn’t respect our own homeland, and now we can all find out together how much damage this will do to the world. The Soviets would never have taken such a risk because they put stable power ahead of pride.

    3. Pushmi-Pullyu says:

      @Alaa:

      You, like Trump himself, appear to have confused the American presidency with a dictatorship, in which the President could simply decree anything he wants, without the consent of the other two branches of government.

      And to underscore what “Another Euro point of view” said, we should consider what things look like from the viewpoint of Russia. It was never a realistic belief to think that Russia would just sit quietly while the country which was the home of its only warm water port — in the Crimea — was brought into the sphere of influence of NATO, which — as a reminder — was formed to solidify Western military opposition to the Soviet Union.

      I’m certainly no Russian or Soviet sympathizer; they are alternately our rival or our enemy… moreso the latter under Putin’s leadership. But we need to understand that Russia viewed the threat of Ukraine joining NATO as the U.S. would have viewed Mexico entering into a military alliance with Russia. The U.S. simply would not have stood for such a thing, and it was entirely unrealistic of Western leaders to think that Russia would have stood for the same regarding a country on its border.

      1. Dan Hue says:

        Except that there is no “threat” from us. NATO’s expansion into Eastern Europe is purely defensive, and the Russians ought to know that.

        1. Another Euro point of view says:

          “Except that there was no “threat” from us. Our missiles deployment in Cuba was purely defensive, and the Americans ought to know that”.

          How does this sound with only a few words changed in your sentence ?

          1. Michael Will says:

            +1

      2. anonymous says:

        Pu-pu:
        “he home of its only warm water port”

        You have skipped geography lessons in elementary school or don’t know how to use a map. Or just looking for excuses for some bloody dictator because he is somewhat associated with leftists (just like you) because of his bloody communist past. Russia has access to Black Sea anyway. It had rebuild Novorossiysk port just before the war as an alternative to Sevastopol.
        All this is not different from other bloody colonial wars that are long thing of the past for other former empires. Russia still lives 50 years in the past. And by the way, they (those under influence of Putin propaganda) hate people like you, Americans are their sworn enemies, especially Clinton supporters and deserve to be eliminated just like these Ukrainians refusing to be slaves of the empire.

        1. Priusmaniac says:

          Kiev wanted to forbid Russian speaking Ukrainians to speak Russian. If the Flemish Belgians tried to impose Flemish on the French speaking Belgians it would have bad consequences as well. If the French speaking Canadians tried to impose French on the English speaking Canadians it would give the same result as well. Intolerance bear conflicts, tolerance bear understanding, exchange and friendship.

          1. super390 says:

            Belgian tanks and airstrikes. Canadian tanks and airstrikes.

            Fat chance.

      3. Jim Whitehead says:

        Sorry Pushmi, but you need to remember that the Russians are masters of disinformation. Don’t be duped by their rationalizations for invasion. The Ukraine isn’t Mexico, and we don’t invade our neighbors like Mexico (not since the 19th century. So your analogy falls apart).

        Putin has said he wants the Soviet Empire back, made easier, by duping gullible apologists in the West. Former UN ambassador John Bolton notes: http://www.politifact.com/punditfact/statements/2014/mar/06/john-bolton/did-vladimir-putin-call-breakup-ussr-greatest-geop/ “He (Putin) gave us notice of his strategy seven or eight years ago when he said, in what is now one of the most frequently repeated quotes from his leadership in Russia, when he said, ‘The breakup of the Soviet Union was the greatest geopolitical tragedy of the 20th century.’

        “It’s clear he wants to re-establish Russian hegemony within the space of the former Soviet Union. Ukraine is the biggest prize, that’s what he’s after. The occupation of the Crimea is a step in that direction.”

    4. kubel says:

      LOL at the fearmongering. Everyone butthurt over a Trump presidency predicting the end of the world need to chill.

      Here in Michigan, the people elected an outsider business man for our governor. Now I’m sure all of us hate Snyder for signing the anti-Tesla bill, and I have some beef against him with his position on certian gun right issues here, but he’s been a fairly effective governor. He brought a business approach to managing the executive branch, and it flushed out a lot of waste and corruption.

      Yes, Snyder a scumbag, and Trump is an even bigger scumbag. But it’s not a bad thing to shake things up a little when we are dealing with out of control spending and corruption at the highest levels of government.

      And forget the campaigning Trump talk. Politicians have never kept their word on campaign promises, and there’s no reason to think Trump will either. He said what people wanted to hear to get him elected. So all this talk of repealing and replacing Obamacare, pulling out of NATO, deporting illegals, defunding planned parenthood- it’s all crap. We’ll see minor tweaking to everything- the rest will be status quo.

      Trump is a moderate Republican with an extreme whacko right wing voice, that’s all.

      1. Another Euro point of view says:

        “We’ll see minor tweaking to everything- the rest will be status quo.
        Trump is a moderate Republican with an extreme whacko right wing voice, that’s all”.

        My opinion as well.

      2. anonymous says:

        Wishful thinking. He is not bound by moderate Republican ideology. And all the whackos in his team will be making the rules. Obamacare will be dismantled first, there is no doubt about it. It barely keeps on its own with insurers withdrawing, remove some funding or fines for not having insurance and it will collapse.

      3. super390 says:

        Gov. Snyder and his party pushed a law that terminates democratic governance of cities that get into bankruptcy – then they pushed heavily-black cities to be declared bankrupt. Under this law, outside “technocrats” take over, who are little more than agents for the corporations that back Snyder. They want Black cities crushed the way Bush’s people did nothing for New Orleans but try to remove its Black population and scatter it to the winds: so that White, Republican cities can replace them.

        And the consequence of this project: the lead poisoning crisis in Flint, decreed by these unelected technocrats.

      4. super390 says:

        If Trump is a moderate Republican, I’d hate to see what an extreme one looks like.

        That goes double for Steve Bannon, the White “nationalist” whom Trump just made the White House policy chief.

        http://www.motherjones.com/politics/2016/08/stephen-bannon-donald-trump-alt-right-breitbart-news

    5. Heisenbrght says:

      And please Alaa explain WHY Russia would want to take over Europe?

      All that talk about military strength neglects the fact that most people in Russia have no interest in expanding the area (at least not further than in the cccp times…)

      Repeating military propaghanda really does no good.

      Most people just want to live in peace, unfortunately wars are started by goverments not by “normal” citizens.

      All this “Russia is evil” talk in the US compares quite well with the “US is evil” talk in Russia and equally to the “Western world is evil” talk in the IS-propaghanda.

      We are the ones to not simply fall to that claims. War will be over when citizens all over the world connect and refuse to believe the bullshit which is spread by military advisors, generals and so on.

      I have been talking to people from nearly all over the world, not ONE single “common” person had any intent to have their home country start a war. However this changes dramatically when you talk to people whose “business” is related to war. Military personnel, weapon and steel companies and last but not least our friend (and here we finally come back to insideevs topic) big oil.

      In this sense: keep calm and carry on!

      1. Boris says:

        Don’t you see that Russians are in a very similar position where Germans were before WW2? How could a corrupt, autocratic leader like Putin have pretty much the whole country behind him. Because West only wants to hurt Russia and only strong Putin can save it before evil western powers.

    6. Ocean Railroader says:

      Trump didn’t want to leave NATO. The only thing he said was that if we the US Tax Payer are going to find suport troops in these counties in case the Russians come to take over. Trump at least wanted the EU to start paying more of the cost their military suport. Such as it would save the US Tax payers billions.

      1. anonymous says:

        This “who pays for it” view is not news and was expressed by Obama too, although in more reasonable tone. Trump is the first though who talks about leaving and giving up to Putin.

      2. super390 says:

        The charge is bulls***. The countries facing Russia are paying their quota, but they have small economies. The point of an alliance is not a cost quota. It’s because the allies are shoring up the weakest among their number against a shared threat since the cost of that one member falling creates far greater costs – gold and blood – than before.

    7. John says:

      LOL…there are 143 million people in Russia and 500 million in the EU only 😀

      1. super390 says:

        Are any of them willing to fight, and do they have the means to do it without the US?

    8. Someone out there says:

      What are you smoking? Seems to be really good stuff!

    9. MDEV says:

      Yeah bur Russians love Tesla.

    10. Jim Whitehead says:

      Insideevs should delete most of these off-topic posts. We are here to discuss Electric Vehicles, not listen to Chicken Littles spread fear about Russia.

    11. Jim Whitehead says:

      Alaa, why do you let the mainstream media scare you about Russia? Sure they have nuclear missiles but their economy still sucks. IF you did the slightest research (see wolframalpha.com for stat math, for example), you would find that this huge country has the economic output of Italy!

      Don’t believe me? Look it up. They don’t want a major war. (Nobody with a brain does). Russia’s estimated total 2015 GDP was 1.326 Trillion US dollars, almost half California’s 2.481 Trillion.

      To state the obvious: Russia is a paper tiger compared to US, the EU, UK or China. The GDP of tiny UK is 2.845 Trillion! Do you see why Reagan’s SDI arms race in the 1980s helped collapse the Soviet economy?

      Russia knows all this stuff, of course. Its like you are a little kid, scared of the loud bark of a little dog with sharp teeth. 🙂

  2. zim says:

    Does anyone but me think that Tesla headlights look kind of lame? Also, the Model S just doesn’t look good unless you put the 20 inch wheels on it, a more than $4k option, which is just ridiculous.

    1. Pushmi-Pullyu says:

      I think they look cool. De gustibus non est disputandum.

    2. BenG says:

      I think the base Model S looks awesome. Better with the 19″ turbine wheels, which aren’t so expensive.

      Sure, it looks better with 21″, as every car looks better with bigger fancier rims. So what?

  3. georgeS says:

    This kind of creative pricing to get government subsidies is exactly what the Conservatives hate!! Just a big scam to steal government money;)

    1. Alonso Perez says:

      Paying less taxes on a certain type of car is now “stealing”? I thought conservatives were always for tax cuts.

      1. Pushmi-Pullyu says:

        Nonsense. Everybody knows that tax cuts are only for those wealthy enough to afford a tax lawyer. (Unfortunately, not really joking.)

        1. kubel says:

          I don’t know about Germany, but in the US, getting $7500 of tax obligation requires roughly $60K-$65K gross income per year, just over median household income.

          1. mx says:

            But the full $7500 comes off a lease.
            You could lease for 3 years, and then buy the car.
            Or, Lease another one.

            The used car market needs more of these.

            1. speculawyer says:

              Yes, the lease is a great way for people to drive EVs cheaply even if they can’t qualify for the tax cuts. The leased EVs then often end up on the used market for low prices and people can buy cheap used EVs.

          2. zzzzzzzzzz says:

            It is more that $65k in practice. Just taxable household income would be $56k when filling jointly to reach $7.5k income tax, but you need to add back $12600 standard deduction (itemized may be much more), $4000 x family members exemptions, and you have at least $76k gross income, which would be closer to $100k in practice as it is likely you would have have more deductions/exemptions/tax credits.

    2. mx says:

      First off, cut the oil subsidies and special tax rules by 50% and we’ll talk.

      Secondly, Germany enjoys the US tax credit for EV’s. So, it’s smart of Tesla to help qualify it’s vehicles.

      Third, what’s the benefit?
      -Fresh Air
      -Big Polluter V8’s off the market, and diesels.
      -More local jobs, to electricians and electric power, that grows the LOCA.L Economy and not OPEC.
      -Less money to OPEC is less money to terrorists.

      Our federal tax credit should be Double.

      1. Miggy says:

        MX said Germany enjoys the US tax credit for EV’s
        No Germany’s incentive/rebate is paid for by Germany and is a € 4,000 electric car rebate.
        It has nothing to do with a US Tax Credit.

  4. leafowner says:

    Just Germany protecting its car industry from the market leader, Tesla.

    1. Miggy says:

      No it is not Germany protecting its own car industry.
      The € 4,000 rebate is for any EV under €60,000 so a Tesla Model 3 or GM BOLT would get the rebate.

  5. K A Cheah says:

    Nostradamus Predictions 2016: World War 3 Confirmed After Donald Trump Win

    What the Nostradamus Predictions Say About the World War 3
    Nostradamus has predicted that many events will happen in the year 2016, including the World War 3. The prediction says that the World War 3 will break out between two major world powers and will last for 27 years.

    “The moment of great violence will coincide with the appearance of a comet in the sky. Nuclear combat and natural disasters shall strike our planet when a giant planet approaches Earth,” according to an article by The Northeast Today.

    Chinese monkey predicts Donald Trump will win presidential election
    http://globalnews.ca/news/3048858/chinese-monkey-predicts-donald-trump-will-win-presidential-election/

    By Rebecca Joseph National Online Journalist, Breaking News Global News

    1. Someone out there says:

      You can retro-fit Nostradamus’ gibberish to mean whatever you want and many conspiracists have made good coin doing so.

  6. Jack says:

    So they admit they can sell any cars without any Incentives? Tesla fanboys claim everybody wants those Tesla Evs cause they are superior. In Denmark we’ve seen that it is not the case.