Tesla Inc (NASDAQ:TSLA) has over the years made its name in the car manufacturing industry for its hard work. There is a lot to be learned from the data from the city’s transportation department. Some top analysts have recently been scrutinizing it with each expressing his/her take. However, one thing was quite evident. It was the is the fact that the changes announced in relation to the tax benefits that customers could accrue upon purchasing the electric cars came with impact.
April 1 was the exact moment the policy was set up and sources indicate that it might last until March 2018.The city has made an important move by choosing to give a tax waiver of about HK$97,500. In the United States of America, it stands at $12,500 and it is usually applicable to the first time owners. Before the policy alteration, there was a record of almost 2,939 first-time Tesla registrations in March and February witnessed five times a similar number.
In China, Teslas are going at relatively higher costs in relation to figures in the United States and some top experts have commented linking that to the shipping and export costs. Anderson, a top executive working with the renowned company affirms that Tesla’s sales dip shouldn’t be looked by anyone as something that is outside this world. It is something that has taken place before though he blamed the registration statistics which according to him made it rather tough to obtain the required pulse for the market.
A number of top journalists followed him as he left a press conference recently seeking to extract some more information from him. He said, “I think it’s probably for sure the case that demand has gone down from the tax incentive rolling off. It’s a classic case of elasticity of demand. If a good costs more people are going to buy less of it.”
A Tesla spokesperson has commented in relation to the change citing that they were experiencing some short term challenges. He called upon the government to come up with policies that would favor them as a company .He added that it would even contribute to more people purchasing the electric cars according to Washingtonpost.