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UK government spent £1.2m per week subsidising Tesla cars

Exclusive analysis by Investors’ Chronicle underlines how government spending is driving the transition to electric cars
UK government spent £1.2m per week subsidising Tesla cars
  • A government scheme spent £61.3m to lower the cost of Tesla cars for UK consumers in 2020
  • Tesla’s high-end vehicles have now been effectively excluded from the programme, but experts say the company will continue to lead the UK market

A government programme spent millions every month subsidising the cost of Tesla’s (US:TSLA) high-end cars for UK consumers, new figures show, prompting concerns that taxpayers' money is not being used efficiently to back the energy transition.

An Investors’ Chronicle analysis has found that state grants for Tesla motors soared as their popularity rose last year, before the government decided to exclude expensive vehicles like those sold by Elon Musk’s company from the scheme in March. Now industry watchers are questioning whether these incentives were necessary in the first place, arguing that Tesla will continue to lead the UK electric car market even without the grants.

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