Deutsche Bank Suggests Tesla Will Benefit From China's Tax Decision

On Thursday, Deutsche Bank's Rod Lache released a note providing his take on the decision by the China State Council to waive purchase tax on electric vehicles, which includes imported "New Energy Vehicles" like

Model S. Lache says the purchase tax equates to 10 percent of the car's [Tesla Model S] price excluding the 17 percent value-added tax. Lache called this a "significant additional stimulus" to what has been an "exceedingly strong" demand for Tesla's Model S in China. Looking ahead, Lache is expecting another "significant boost" to demand early in 2015 with the release of the Model X and is anticipating a "very significant" upgrade/update for the Model S in the next 12-24 months. Lache currently rates Tesla stock with a Hold rating and $220 price target.