Wednesday, April 24, 2019

2 Comments

  1. Mark M on January 15, 2019 at 12:06 AM

    How then do you explain why the Tesla Model 3 is outselling all other cars in its class in the USA.
    It’s taken Tesla 14 years get to this point but now other automakers are joining the party as Dan Neill has explained in his piece.
    I’m betting this article will not age well.

    • Steve Huntoon on January 18, 2019 at 8:43 AM

      Mark M.,

      Thanks for your comment.

      After 14 years Tesla (all models) sells less than 1 percent of all motor vehicles in the U.S. Yes, you read that right. 0.7% to be precise. https://www.marklines.com/en/statistics/flash_sales/salesfig_usa_2018.

      And that niche is only due to highly regressive federal and state taxpayer subsidies ($7,500 federal and various state subsidies), to emission credits paid by other car makers (and their customers), to not paying for the nation’s roads via the gasoline tax, and of course to Elon Musk being the greatest showman since P.T. Barnum.

      Governments can of course put thumbs on the scale and make viable businesses out of economic failures. Like the U.S. subsidies, and like China mandating electric cars while building hundreds of new coal plants that will supply them electricity. Isn’t it ironic?

      Steve

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