Electric carmaker’s submission to the government said grants for battery powered cars could be revenue-neutral

Elon Musk’s Tesla lobbied the UK government to raise taxes on petrol and diesel cars in order to fund bigger subsidies for electric vehicles, alongside a ban on hybrids.

The US electric car pioneer called for a rise in fuel duty and a charge on petrol and diesel car purchases to pay for grants and tax breaks such as a VAT exemption for battery-powered cars, according to submissions to the government seen by the Guardian.

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