Tesla Asks Some Corporate Customers in China to Repay Subsidies

Photo: Tesla (via CnEVPost)

Corporate customers of Tesla’s arm in China are being asked to pay back subsidies on electric vehicle (EV) purchases due to not being driven enough.

Tesla is asking some corporate customers to return purchase subsidies in China, after the vehicles failed to achieve the requirements allowing them to get the subsidies, according to CnEVPost.

A number of corporate customers received letters from Tesla saying they needed to pay back the amount that Tesla subsidized for them, due to mileage requirements that were not met after the subsidies were granted.

The letter obtained by consulting firm Land Roads, and translated by CnEVPost, said, “because your company purchased a Tesla vehicle and failed to meet the total miles driven condition within the time frame set by state policy, your company’s vehicle has been conclusively confirmed to be unable to receive a settlement of the state subsidy.”

The letter continues, “According to the contract, the subsidy already enjoyed by your company in the purchase price was advanced by our company, and your company now needs to make a supplementary payment of that amount to our company.”

While the news doesn’t apply to non-corporate, or individual customers, the subsidy did require Tesla to advance the money up front, despite vehicles only needing to meet mileage requirements by two years after the subsidy.

Tesla canceled a few recruiting events in China earlier this month, amidst CEO Elon Musk referencing job cuts, though over 1,000 job listings still remain for positions in the country.