Posted on 10/16/2014 1:45:48 PM PDT by jazusamo
Environmentally conscientious, wealthy car enthusiasts are in luck! The much-hyped "D" unveiling came last week as Tesla CEO, Elon Musk, presented what appears to be a very impressive version of its plug-in Model S electric car called the P85D. Boasting 691 horsepower, 687 ft/lb of torque, AWD and a blazing 3.2 second zero to sixty time, the new rich peoples' toy is expected to cost in the neighborhood of $120,000. In fact, the car is so darn impressive that the only obvious question is why in the world do we need to give the affluent purchasers of cars like this a federal tax credit of $7,500 each?
I can see why General Motors would need subsidies to sell such cars as the Cadillac ELR (which lumbers through a zero to sixty time in a laborious 9.4 seconds) at a price of about $75,000. The car is essentially a gussied-up Chevy Volt and has been another embarrassment for GM. Tesla, on the other hand, has proven that it can muster demand for its vehicles.
Tesla and Elon Musk have done a more impressive job of bringing the politically-popular but thus far economically non-viable technology of electric vehicles to the masses. Tesla's recipe for success to date has been to make vehicles that can be afforded by only the wealthiest Americans while the rest of the population is expected to foot the bill for a portion of the cost in the form of tax credits.
The next test for the viability of electric cars will come when Tesla unveils its lower-priced versions of plug-in vehicles, something that is in the works. It will be a credit to Musk and his company if he is successful, but the challenges remain. Tesla does not have a dealer network, so getting service on the cars requires traveling to one of the few existing service sites in the country. Charging stations are still not widely available and have also required taxpayers to foot the bill for most of the installations. Finally, the long-term performance and possible issues for lithium-ion based battery technology are unknown. Add to these the question of Tesla's corporate profitability outlook. Can the company actually make enough money to thrive?
If electric vehicles are truly a viable alternative to traditional gas-powered cars, the technology should be able to grow in the free markets without billions of dollars of taxpayer money. Whatever the future holds for the electric car market and Tesla I think it is hard to argue against, at the least, stopping subsidies for buyers of any cars that cost over $50,000. The purchasers of such cars are people who want and can afford the vehicles. The newest Tesla that was just unveiled is sure to have a bunch of rich folks lined up to purchase the latest green wonder-car. There is no need for the rest of us to have to help them pay for it.
Mark Modica is an NLPC Associate Fellow.
Are there any cries of tax cuts for the rich?
Musk is a regime supporter / crony capitalist.
The MSM only worries about wealthy conservatives.
I've thought for years Tesla stock was a slam dunk short but never bet against a well connected insider with infinite govt money to tap into.
The Tax Credit has been a joke since it was implemented.
Any tax credit should have been multiplied by the % AMERICAN content, but that would have involved 3rd grade math, so would be far too complicated for congress.
Now that Tesla has shown the electric car to by viable, the tax credit needs to go away completely.
Let’s stop subsidizing rich guys cars. Even Democrats will agree with that it you put it in those terms.
Were it not for the ZEV credit revenue, Tesla would lose money on every car sold.
Totally agree.
Yes, I’ve read that that’s where Musk is making the money off EVs.
I believe I read something a while back that CA may reduce or eliminate those credits, have you heard anything about that?
By picking a number, you're falling for liberalism. There should be no tax credits. Period.
But if there is, there should be no number, and it should apply to the Tesla D!
Usual game for liberals. Perks for them paid for by everyone else.
A while back they did a study of who was using the “free” charging stations in Ann Arbor Michigan. Turned out they were all 6 figure earners who could afford to pay for their own electricity. Most of them were UofM staff.
Interesting and not surprising.
My buddy’s (adult) daughter has a Tesla, works at a major drug company making six figures, and has a long commute.
The company installed a charging station, likely to get some type of tax credit/subsidy and/or fawning media coverage.
She was riding high on the free juice until another guy got a Chevy Volt and they started fighting over who got the plug every day, LOL.
My uncle in Ann Arbor likes his Prius for around town driving but when I see him at thanksgiving he’ll drive his Tahoe the 60 miles to the old hometown.
With gas heading for 2.50/gal, we can all enjoy some heavy iron! God bless the frackers!
Why should you get a tax cut for buying a frigging car?
You shouldn’t. And the thing about this tax credit is that many lower wage earners and retirees don’t pay $7,500 in federal taxes so they can’t take advantage of it even should they buy a cheaper model. It should never have been implemented in the first place.
Seattle Socialist Group Pushing $20/hr Min. Wage Offers $13/hr for Web Developer
http://www.freerepublic.com/focus/bloggers/3216062/posts
The first 200,000 electric cars from each manufacturer are eligible for the credit. By implementing a $50,000 cutoff, Tesla could then “save” their remaining credits for their future $35,000 Model 3 that is set to come out in a couple of years. The current Model S has already gained traction in the market so why not save the credits for when they can make a bigger impact when the Model 3 comes to market? It is currently out of Tesla's hands at the moment and would have to be changed with federal legislation.
The democrats have suggested upping the tax credit to $10,000. I wonder if democrats and republicans could agree on a bill that said that only cars under $50,000 were eligible but that the credit would be $10,000.
How about an informal poll? If you had to choose today between A] the status quo or B] the above bill, what would you choose? (I know many would prefer option C] remove the credit altogether, but obviously that would not get past the Senate or the President's desk. I'm sure others would suggest option D] wait until we get a conservative President but polls suggest there is a significant chance Hillary might stop that from happening.)
What do you guys think?
I think you're a moron.
There shouldn't be any tax credits. Period. Tesla, Toyota, Ford, Gubmint Motors (f-em). Doesn't matter.
The only legitimate role of taxation is to raise necessary revenue to fund the legitimate functions of the government.
It is not legitimate to use the tax code to influence behavior.
Okay, so if you were king of the U.S.A. you would remove the credits. Great. But in our current system of government, it sounds like you are choosing C] introduce a bill to remove the credit knowing that it would never get past the Senate or the White House. In effect your action would be to A] keep the tax credit the way it is.
Admittedly, I haven't followed this legislation closely.
But it sounds as if the Donkees put the tax credit in, failing to foresee the result: a really neat, really expensive, luxury electric sports car complete with a gubmint discount.
My position is, we shouldn't allow them to fix their mistake without adopting our doctrinaire (Losertarian) position hook line and sinker!
It's a neat car. Elon Musk is really brilliant for a libtard. But no way should the gubmint be involved!!
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