January 2 (UPI) — Tesla will no longer enjoy the U.S. government’s tax credit for electric vehicles, which will have a negative impact on the company, and Tesla will turn to China for growth,media reported. Previously, Tesla consumers were entitled to a $1,875 federal tax credit, a policy that actually lowered the price of Tesla cars, but ended by the end of 2019. From January 1, the U.S. government will no longer introduce tax credits for Tesla’s customers.
Media say Tesla may increasingly rely on the Chinese market for future growth. Tesla has also said China could be the model 3’s biggest market. Tesla began delivering its first Model 3 electric car in China this week.
In addition, recently, the Ministry of Industry and Information Technology announced the vehicle purchase tax exemption of new energy vehicle models (29 batch) in the list of Tesla Shanghai-made models into the vehicle exemption from the purchase tax of new energy vehicles, vehicle model 3. It also means that all Tesla models are on the list of vehicle-exempt purchase tax exemptions.
Tesla’s earnings report showed U.S. sales in its biggest market fell to $3.13 billion in the third quarter, compared with $5.13 billion a year earlier, down 39 percent from a year earlier and the first decline in more than two years.
Tesla’s sales in its second-largest market, the Chinese market, have surged. Tesla’s third-quarter revenue in China was $669 million, up 64 percent from $409 million a year earlier.
Tesla’s shares rose 0.88 percent to $418.33 on the last trading day of 2019, giving it a market capitalization of about $75.402 billion.