Tesla May Lose Tax Breaks In Denmark


Tesla Motors is still celebrating the launch of its long-awaited Model X SUV, which has won some amazing reviews. But the newly launched car, of which specific pricing details have still been kept secret, could get more costly for Danish consumers.

Removing tax breaks on EVs

The Danish government has come up with a proposal to eliminate tax breaks on electric vehicles, and this might raise the price of Tesla’s Model X by three times in Denmark, says a report from Forbes. The Danish plan to remove tax breaks raises questions like how well Tesla can thrive without incentives from the government.

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The Danish government’s rising budget deficit has forced it to consider removing tax breaks as there is a need to tighten government spending. “The former government may have promised to keep electric cars exempt from car taxes, but they just forgot one thing: finding the money to do so,” noted Denmark’s Finance Minister Claus Hjort Frederiksen. The Danish government will need to make some tough choices going forward, and Frederiksen emphasized the importance of doing things with reason.

Without tax breaks, the price of electric vehicles could triple in Denmark, adversely impacting Tesla sales in the country. The news that the cost of buying a Tesla could triple in Denmark has given rise to concerns about the ultimate cost of the Model X without incentives.

Tesla Model S to get costlier too

Tesla is still to provide its buyers with the final cost of the Model X even after they have paid the $5,000 deposit. The only available information is that the base Model X will cost $5,000 more than the base Model S.

Tesla’s Model S debuted in 2012 and has been very popular since then, topping bestseller lists around the globe. Tesla’s Model S enjoys exemptions from green taxes and the vehicle registration tax of 180%, according to Tesla’s Danish website. The latter exemption is good only through December, as noted by the site.

The Danish government’s move to eliminate exemptions will definitely change the pricing of the car. Tesla’s Model S costs 650,000 kroner ($97,233 US) at present, and this could go up to 1.8 million kroner ($269,262 US), says the report. It must be noted that Denmark is not a part of the Eurozone, and therefore does not use the euro as its currency.