4 ms·
I don't think it's a surprise that Tesla would not exist without government subsidies (I say this as someone who thinks the Model S is an excellent car). From a
by declan 11y ago
I don't think it's a surprise that Tesla would not exist without government subsidies (I say this as someone who thinks the Model S is an excellent car). From a piece in today's WSJ:
http://www.wsj.com/articles/the-savior-elon-musk-1432938547 http://www.wsj.com/articles/the-savior-elon-musk-1432938547
...Tesla likely might not even exist without a former State Department official whom Mr. Musk hired to explore “what types of tax credits and rebates Tesla might be able to drum up around its electric vehicles,” which eventually would include a $465 million government-backed loan...
In 2017, he plans to introduce his Model 3, a $35,000 car for the middle class. He expects to sell hundreds of thousands a year. Somehow we doubt he intends to make it easy for politicians to whip away the $7,500 tax credit just when somebody besides the rich can benefit from it—in which case the annual gift from taxpayers will quickly mount to several billion dollars each year...
- mikeash 11y agoThat part about the $7,500 tax credit is rather ignorant. As currently structured, it's limited in the number of times it can be applied to vehicles from any given manufacturer. After 200,000 vehicles sold, the credit drops off rapidly and then disappears altogether. If Tesla succeeds in their goal of selling hundreds of thousands of Model 3s per year then the credits will quickly expire for them and the ongoing cost to taxpayers will be zero. The law could conceivably be changed, but the odds of that seem remote.