No, the reason is a rulong by Germanys Verfassungsgericht (you might call it Germany's supreme court) making the repurposing of soke Covid related funds, which where used and planned to be used for various other things, illegal. Now the government is left with some significant budget shortages, cutting the EV subsidies is just one of the resulting saving actions.
Some background: in 2009 the debt brake [0] was enacted, limiting the budget deficit to 0.35% of the GDP. The current government tried to circumvent it (most economists seem to see the law as stupid, but that might well be my bubble), our constitutional court ruled the circumvention illegal, and now they had scramble and see how to make the budget work under those new constraints.
The Subsidies were ended because parts of the federal 2023 budget were declared unconstitutional by the federal constitutional court and the government had to scrap parts of it.
That included the electric vehicle subsidy for all cars from all manufacturers.
I'll wager that this will hit the Germans harder than Tesla.
This is not specifically about Tesla. The government really didn’t want to, but there is something similar to the debt ceiling in Germany and they were trying to pass part of the budget by sidestepping this through a covid emergency fund that was repurposed. However the opposition launched a case at the constitutional court and they decided it was unconstitutional. So, now a lot of programs get canceled because there is no funding in the budget.
It isn't even the German government's fault. It's the fact that they were using a Covid budget to pay for those programs because they are struggling to pass any new investment budgets in the parliament.
The current German government is having difficulties raising money, despite Germany having a low debt-to-GDP ratio, because the coalition is up against CDU's (former chancellor Merkel's party) and other more conservative parties, they don't want to let the new coalition do anything.
Germany is going into a deadlock because of that political fight, and extreme right-wing parties are growing everyday, as Germany drowns into a recession with an industry that needs those incentives badly, in order to compete with Tesla and Chinese carmakers.
If you want to see what destruction of value is, just watch CDU sink Germany.
Future is BYD. Hotcakes everywhere. Their battery tech make Tesla look amateur. As for self driving, yeah Tesla is more advanced, but then I am still waiting for that 5th gen AI thing and not being declared by government unsafe recently. Tesla is solyndra in the making....convince me otherwise.
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[ 4.8 ms ] story [ 14.9 ms ] thread"a blow for Tesla (TSLA), Volkswagen (VWAGY), BMW (BMWYY), Stellantis (STLA) and more."
[0]: https://en.wikipedia.org/wiki/Debt_brake_(Germany)
It is definitely your bubble. Be more humble.
The Subsidies were ended because parts of the federal 2023 budget were declared unconstitutional by the federal constitutional court and the government had to scrap parts of it.
That included the electric vehicle subsidy for all cars from all manufacturers. I'll wager that this will hit the Germans harder than Tesla.
Do you know if there's any analysis online of what parts of the budget were scrapped?
A lot of subsidy in all possible areas.
The current German government is having difficulties raising money, despite Germany having a low debt-to-GDP ratio, because the coalition is up against CDU's (former chancellor Merkel's party) and other more conservative parties, they don't want to let the new coalition do anything.
Germany is going into a deadlock because of that political fight, and extreme right-wing parties are growing everyday, as Germany drowns into a recession with an industry that needs those incentives badly, in order to compete with Tesla and Chinese carmakers.
If you want to see what destruction of value is, just watch CDU sink Germany.