The EAEC recently ruled that the vehicle line no longer qualifies for the subsidy, claiming the vehicle is too expensive and doesn't meet the environmental bonus guidelines. This means about 800 owners will be required to repay the hefty sum.
The decision came from the fact that a base Model S isn't actually available in Germany, which is the only model that falls under the $69,000 limit, but was delivered from out of the country. Though Tesla intends to appeal the agency's decision and has stated that they will cover the refund cost for customers until the situation has been settled.
"As our website demonstrates, anyone in Germany has always been able to order a base version Model S that was below the required price level, and we have delivered such cars to customers."
The German rebate program was designed to encourage more electric cars in the country, reducing emission averages. This led to a 64 percent increase in the first half of the year. Though to ensure it was for the "average man" and not wealthy collectors, a value limit was set.
Tesla is also facing a similar loss of government support in the States, where they have exceeded their 200,000 vehicle limit. This means the current $7,500 tax credit will begin its phase-out period.
