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Sure, oil is subsidized. But it's disingenuous to claim Tesla doesn't play the regulation arbitrage game either. Not only is demand for Tesla's cars _partially
by botty_throwaway 10y ago
Sure, oil is subsidized. But it's disingenuous to claim Tesla doesn't play the regulation arbitrage game either.
Not only is demand for Tesla's cars _partially_ sustained through consumer tax rebates, but Tesla's _profitability_ has historically relied on selling ZEV credits. Both of these factors may be cut short by the changing political tides now that the [federal] executive, legislative, and (soon) judicial branches will be majority led by a party that has a rough consensus on switching priorities from the past decade or so.
I'm not trying to antagonize against Tesla specifically, nor prop up the virtues of a truly ecologically-damaging industry that plays by a similar rulebook, but anytime a company's business model relies on a certain political climate rather than _solely_ on efficiency gains through technological innovation, the door swings both ways given a long enough time scale.
Cue discussion about how innovative R&D is not possible without initial government investment, especially against already subsidized industries that don't have to factor in tremendous externalities... but that's a more politically subjective debate compared to just stating how I don't agree with the claim of Tesla being 'unsubsidized.'
- loourr 10y agoTax credits will be all exhausted by the time they release the model 3 since it applies for only so many vehicles per manufacturer. Also the ZEV credits are being sold for less then $0.50 on the dollar if they can find a buyer at all since they don't produce polluting cars themselves (per Teslas latest earnings call) and contribute negligibly to their bottom line. Not to say that Subsidies haven't helped to get Tesla to where they are, only to say they won't be necessary moving forward.