The German government announced that it will abruptly end its subsidy program for electric vehicles on December 31, which has dealt a blow to automakers in one of its biggest European markets. But Tesla and Mercedes-Benz say that they will compensate for it, covering the full price of the subsidy for German buyers, with other automakers joining in.
On Saturday, Germany announced that budget cuts were the reason for ending its “environmental bonus” as of Sunday. With the subsidy, customers in Germany benefited from €6,750 euros ($7,390) for the purchase of an EV, with the government paying up to €4,500 ($4,920) and the manufacturer covering €2,250 ($2,460). Over the weekend, the German government announced that it would close shop on the subsidy program and not accept any new applications as of December 17.
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