Tesla Model 3/Y Now Gets Max Subsidies in Germany; Lease/Finance Rates Now Start from 0.99%

As Tesla’s electric vehicles (EVs) become more and more common in the German market, new buyers can now safely look forward to subsidy support from the government.

Germany’s Federal Office for Economic Affairs and Export Control (BAFA) has added Tesla’s Model 3 and Y units to the list of EVs eligible for its full €4,500 ($4,888) state subsidy, as reported by local publication T&E Magazine (via @TslaChan and @Berlinergy).

The update applies to all of Tesla’s vehicle configurations, since base models and long-range versions are now both below the €40,000 cutoff for eligibility.

Additionally, @Tesla_Adri has pointed out that leasing interest rates have dropped to 0.99 percent on Model 3 and Y units for those taking delivery through March 31. The Model 3 and Y financing rate has also been cut to 1.97 percent.

Following the price cuts and the confirmation of the subsidy, the Tesla Model 3 and Model Y units are now available for as low as €40,470 ($43,960.90) and €41,370 ($44,938.50) in Germany, respectively.

The news comes just a few days after it was announced that Tesla had become Germany’s top-selling EV brand, overtaking the local automaker Volkswagen.

Tesla also opened a new parts distribution center in Giengen, Germany a couple weeks ago, with the company holding an opening ceremony for the location on January 12.