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Tesla applied for a $106 million tax break on $1.26 billion expansion of Fremont Factory for the Model 3

Tesla Fremont factory 20

A few weeks ago, Tesla closed an important $1.7 billion stock offering to finance its new build plan for the Model 3. The capital raise was needed for Tesla to accelerate its production and achieve a rate of 500,000 cars in 2018 – two years earlier than previously planned.

The new plan is in response to the higher than expected demand for the Model 3. Tesla’s management was expecting 100,000 to 200,000 reservations at best, but the automaker already received over 373,000 reservations.

While Tesla already confirmed that some of the capital would be used for its operations, the company made it clear that most of the money would be put toward an expansion of the Fremont factory to increase production. Now we get a specific number for the expansion as Tesla is applying for a $106 million tax break with the state to help the project. Expand

More EVs will get a sales tax break of ~$3,000 in Washington state starting in July


Washington state currently offers a sales tax break on electric vehicles with a price tag of up to $35,000. It’s a well-intended and interesting offer, but in reality, it doesn’t apply to a lot of vehicles. Even for something like a Nissan Leaf, it only applies to the base model with a 24 kWh battery pack and no options.

Today we learn (via NW News) that Gov. Jay Inslee signed legislation introducing a compromise that will allow more people to benefit from the tax break on a slightly more interesting lineup of electric vehicles.. Expand

Tesla’s sales surge in Denmark in November as electric vehicle tax breaks are ending

tesla-model-s-in-actionAfter some confusion over Tesla registering thousands of Model S’s in Denmark in anticipation of a surge of electric vehicle sales over the phasing out of tax breaks in the country starting in 2016, the company confirmed having ordered 2,500 license plates in order for Tesla buyers to be able to complete their purchases by the end of the year.

With 113 Model S’s registered in October, the data didn’t reflect any demand increase due to the end of the tax breaks for electric vehicles, but the government published November registration data today and it now shows a significant increase in Tesla Model S registrations. Expand

Danish government accuses Tesla of registering 2,500 Model S’s to circumvent tax increase, but the company denies

Tesla-Wall-ChargerThe Danish government recently announced the phasing out of tax breaks for electric vehicles starting next year. The new provision would increase the price of all-electric cars significantly, but even more so for luxury vehicles like the Tesla Model S, which could see its price increase by as much as 180%.

As I speculated in a recent piece: “Denmark’s tax increase on electric cars could be a blessing in disguise for Tesla“, potential buyers could rush to secure the purchase of electric vehicles before the end of the tax break, which would create a surge in EV registrations during the last quarter of the year.

Earlier today, tax minister Karsten Lauritzen confirmed that such a surge happened, but he claimed that it could be due to an “illegal bulk purchase” of 2,500 cars from Tesla. Expand