If it weren’t for government subsidies, Electric vehicles would still be a NICHE product. The richest man in the world, Elon Musk, is rich primarily because of government subsidies and regulations that funnel UNEARNED income his way.
What’s happening in 2024 is that people have already tried out EVs for themselves, and ignoring the obvious range anxiety, the real problem appears to revolve around the resell value of these EVs, which depreciate rapidly not only because of the battery but because of the weight of the vehicles, the tires, the insurance, and the cost associated with maintenance along with the time it takes to fix an EV.
With Tesla Inc is attempting to keep everything in-house, which slows down the process; the unfortunate reality of the Tesla EVs is that Elon might have a point in regards to controlling maintenance because EVs are hazardous vehicles, and if a sloppy mechanic makes a sloppy diagnosis, and it causes harm, the entire EV market takes a hit.
So, the MARKET fundamentals for EVs are still a work in progress, and if you ask me, hybrid vehicles will take more market share from EVs in the future the worst part is that without subsidies, we don’t know the true MARKET value of EVs.
It’s still unclear if Tesla is a viable company without subsidies. Most of us are aware that Tesla’s net profit doesn’t come from selling cars.
CNN Business
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Tesla posted its first full year of net income in 2020 – but not because of sales to its customers.Eleven states require automakers sell a certain percentage of zero-emissions vehicles by 2025. If they can’t, the automakers have to buy regulatory credits from another automaker that meets those requirements – such as Tesla, which exclusively sells electric cars.
It’s a lucrative business for Tesla – bringing in $3.3 billion over the course of the last five years, nearly half of that in 2020 alone. The $1.6 billion in regulatory credits it received last year far outweighed Tesla’s net income of $721 million – meaning Tesla would have otherwise posted a net loss in 2020.
If you’re unaware, Tesla, is the recipient of Environmental, social, and governance(ESG) also known as corporate welfare. This is one of the many reasons why Elon Musk loves the Carbon Tax.
Tesla is the leader in the EV market, so if it can’t post a profit, what does that tell you about the entire EV market? I believe Volkswagen overtook Tesla in terms of market capitalization; however, Volkswagen’s EV went bankrupt.
VW Weighs First-Ever Car Plant Closing in Europe to Cut Costs
By Monica Raymunt
July 9, 2024 at 1:34 PM EDT
Updated on July 10, 2024 at 6:09 AM EDTVolkswagen AG will potentially shutter an Audi electric-vehicle factory in Belgium to save costs, in what would be a watershed moment for Europe’s biggest carmaker.
The manufacturer has never closed a car plant in the region, but the high-expense Brussels site could become the first due to poor demand for an electric SUV made there.
So, this is the reality in the EV market; the reality is that we don’t know if there really is a MARKET there. In many Western countries, they have an INITIAVE to make purchasing an EV more expensive as Chinese-made EVs are being charged tariffs, signaling that Tesla for example, can INTENTIONALLY run an inefficient manufacturing process and pass the remaining costs not only over to consumers but also pass those costs over to other private corporations who are not ESG compliant.
Volkswagen Walks Back EV-or-Bust Strategy That Rankled Rivals
CEO Oliver Blume is turning to hybrids and striking partnerships as EV sales slow.
The entire EV market as currently constructed along with ESG, appears at least for now, DECADES, and possibly centuries away from being marketplace efficient, depending entirely on the political machine, to funnel UNARNED money to it.
Being that Elon Musk for example has full control over the Democrat Party, being that the Democrats want to be seen as “Green” he’s now, begun to support the Republican Party, as he pivots to make sure that no matter what side of the political aisle wins elections, his company will be the ongoing recipient of profitability, even thought the marketplace, clearly feels as though the current EV market is broken.
