Tesla Motors Inc (TSLA) stock jumps near $200 following Chinese subsidy announcement
Tesla Motors Inc (NASDAQ:TSLA) stock jumped almost 6% today and is now close to $200 per share again. The Chinese Finance Ministry is going to extend a subsidy program for consumers that want to buy electric vehicles, according to Benzinga. The subsidy program for electric vehicle purchases is scheduled to happen in 2015.
The Chinese government extended the program with the goal of hitting 500,000 hybrid or EV vehicles next year and 5 million by 2020. Tesla Motors is started accepting preorders for vehicles in China last August and is going to start delivering vehicles in China this month or next.
Tesla has received positive feedback from customers in China and Europe. Shipments in China could hit the same number as U.S. shipments by next year. Tesla Motors may even build a facility in China eventually.