Posted on 04/12/2017 3:49:38 AM PDT by IBD editorial writer
Motor City: The big news in the auto world was that Tesla topped the market value of General Motors. That means the car company that gets massive taxpayer subsidies is now worth more than the car company taxpayers bailed out a few years ago. Welcome to the world of crony capitalism.
On Monday, Tesla's stock closed at $312.39, which meant the startup electric car company, which sold a grand total of fewer than 80,000 cars last year, was worth more than GM, which sold 80,000 Chevy Silverados every eight weeks. (Tesla's market cap edged below GM's on Tuesday.)
Is this a case of irrational exuberance gripping investors? Or the electric car version of the 1990s internet bubble? Is the future of Tesla really that bright? We tend not to second guess the wisdom of the markets to get things right, at least over the long term.
But it's worth noting that whatever Tesla's growth potential, at the moment the company is heavily reliant on taxpayer support.
(Excerpt) Read more at investors.com ...
Hey, GM still owes us money! Did they ever pay back the gubment for bailing them out? NOPE! Moved the money from one pocket to the other and said “we’re even”!
GM is subsidized too, right?
So sick of welfare for the rich and the lazy poor.
The federal government should not subsidize GM, or Tesla, or electric cars, or other “fuel-efficient” cars. As taxpayers, we should not subsidize any private businesses at all. It’s really very simple. Government is not there to pick winners and losers based on connections to those in power or based on some perceived “good of the planet”.
We also should not subsidize those too lazy to work. A dishonest diagnosis of some mental disability does not in most cases justify taxpayer subsidies for individuals. I personally know people missing both arms, and suffering severe PTSD, who still work productively; I have no sympathy for snowflakes who whine and claim that means working people owe them a living.
Electric cars simply don’t make economic or ecological sense. The government was the only thing keeping them in production. I predict that if the present government drops subsidies and tax support that the entire electric car industry will dry up and vanish in short order.
Incidentally, as of last month GM had an unsold inventory backlog of cars something like 200 days. Chrysler and Ford had a lesser amount but still way over the 30-60 days they like. Trucks and SUV’s are selling just fine. Here are the reasons. The cars are TOO SMALL. There fore people are buying larger more comfortable vehicles. Without government interference the companies would stop making cars and just let the inventory drift down over the next two years. But regulations force them to make (and sell) a large amount of small cars to keep the fleet fuel mileage at whatever the current, ridiculously low number is. The government has forced the industry into a corner where they could all go bankrupt.
And its sticker price was about half what a Tesla's is.
Kinda makes me feel sorry for today's Tesla owners.
The bigger the campaign donations and perks the bigger the subsidies.
There shoukd be no subsidies for Tesla
Tesla investors are betting that Trump will continue these subsidies???? That’s just insane.
They ARE??
Even though that is what it has done ever since gummint was invented!
Oh?
Can your truck get to 60MPH in 2.37 seconds?
There is still a large market for small cars and even electric vehicles; however, government interference has irreparably skewed the market to the cronies. If Big Brother hadn’t interfered, the Big Three would have died from natural causes long ago. We would have had numerous independent innovative manufacturers building everything from hybrid monster trucks to super mopeds for college kids.
Crying about Tesla subsidies and CAFE standards is a bit disingenuous when the entire industry in complicit in maintaining their government-sponsored monopolies. Another shot of Ethanol, anyone?
Must be one of those *evil* TDIs.
(know where I can get one...cheap?)
There are no federal subsidies for Tesla. The article is about tax incentives offered by the states, which every car company gets.
Tesla will bury the competition. That’s a fact. They are about to unveil fully autonomous self driving cars at a very low cost. That’s why the stock price is going through the roof.
I’m sticking with Ford because they never took a dime from taxpayers. It’s time to buy another F-150.
The standard North American onboard charger accepts single phase 120 or 240-volt sources at a rate of up to 10 kW. Included adapters allow the car to charge from a standard 120 volt outlet, a 240 volt NEMA 14-50 outlet, and SAE J1772 public chargers. An optional US$2,000 upgrade for a second 10 kW onboard charger supports a total of up to 20 kW charging from an 80 amp available US$750 Tesla Wall Connector.[4] The North American connector uses a proprietary Tesla design.
Charging times vary depending on the battery pack's state-of-charge, its overall capacity, the available voltage, and the available circuit breaker amperage. From a 120 volt/15 amp household outlet, the range increases by 3.75 miles (6 km) for every hour of charging. From a 10 kW, NEMA 14–50 240 V/50 A outlet (like those used by RVs or standard cooking ranges), the charge rate is 28.75 miles (46 km) per hour. Using Tesla's 20 kW, 240 V High Power Wall Connector increases the rate to 57 miles (92 km) per hour if the car is configured with dual chargers (20 kW).[141]
24 hours gets you 88 miles of driving!
Needless to say; if you pay THAT much for the car; you sure as heck ain't gonna balk at buying the higher power charger!!!
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