NEW YORK (TheStreet) -- Tesla Motors (TSLA) shares are down 0.6% to $224.37 in early market trading on Tuesday following reports that the Chinese government is planning to extend its electric vehicle subsidies to 2020. However, the subsidies will only apply to domestically made electric vehicles while excluding imports like Tesla, according to Reuters.
China is investing in green technology as pollution, due in part to the country's emerging economy, has reached health threatening levels.
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The country's government hopes to have 5 million electric vehicles on the road by 2020, though current sales levels put it behind that goal. Production of electric vehicles through November in 2014 were five times the level of the previous year, according to Reuters.
Consumers who purchase pure electric vehicles, not hybrids, will be eligible for a 55,000 yuan ($8,834) subsidy, while buyers of pure electric buses will be eligible for a 500,000 yuan ($80,624.35) subsidy.
TheStreet Ratings team rates TESLA MOTORS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally high debt management risk."