One Big Risk for Tesla Inc. Is Beginning to Rear Its Ugly Head

Buyers of Tesla Inc. (NASDAQ:TSLA) vehicles in Ontario have been put on notice that they should expect to pay more for their new electric vehicles, due to regulatory changes which will see the current rebate program for EV buyers scrapped.

As promised during the Ford campaign, overturning the previous Wynne government incentives has become one of the low-hanging fruit policy changes which has been targeted first. Buyers of the Tesla Model 3 can expect the base model to increase in price by approximately $14,000, a significant jump, or instead choose to forego the purchase of the vehicle. With many of the reservations taking place nearly two years ago, Tesla’s consumer base in Ontario has a right to be upset.

Investors may become concerned with the long-term ramification of reduced EV incentives over time. With many Obama-era incentives set to expire over time, the indirect subsidies Tesla receives to boost buyer demand in the U.S. are likely to continue to diminish, barring any new investment from congress. Creating a mass market for electric vehicles has, in many ways, been shaped by rebates and the ability for higher-cost technology to be made affordable to the masses by way of government incentives.

I expect to see more analysis on Tesla reservation numbers as governments around the world debate the cost and feasibility of rebates offered to its citizens previously.

Invest wisely, my friends.

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