Hey, Rob Mower here, and today we were talking about some pretty big news coming out of Germany.

They have announced their stimulus package that we had

discussed earlier this week and it seems like a pretty big win for electric vehicles.

Remember we had talked about the lobbying for support of internal combustion engine vehicles as well as electric vehicles and

there were some rumors that that support had actually made it into the

final cuts but with the details of the new stimulus out we have learned that there's

almost no new support for internal combustion engine vehicles,

while there is quite a bit of new support for electric vehicles.

We'll go through all the changes here but to not bury the lead.

Effectively, the price of the model 3 in Germany is going to come down by 8 to 10 percent depending on the model.

The two biggest changes in the stimulus package that allow for that price reduction are a doubling

of the federal incentive, the purchase subsidy that Germany provides for electric vehicles.

Previously for vehicles starting under 40,000 euros, that was a 3,000 euro subsidy that is now

doubled to 6,000 euros.

My understanding is that this applies to all trim levels of the model 3,

because the entry-level model 3 starts below a 40,000 euro net price before value-added tax is included,

which makes the other trims eligible for that full 3,000 euro now, 6,000 euro federal incentive.

For vehicles that have their entry-level base price above 40,000 euros, but below 60,000 euros,

previously I believe that federal incentive was 2,500 euros. It's unclear

but it looks like that is doubling as well, so that would mean 5,000 euro subsidies for those

slightly more expensive vehicles. So that's the biggest change, but that's a pretty big spread from the value of an electric

vehicle versus an internal combustion engine vehicle that really should help drive the model

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