denverpilot
Tied Down
They get no more benefit from fleet percentage than Ford or anyone else. It's a black and white thing, you either meet it or you don't.
That's not entirely true. For a company that has a highly successful gas powered line-up, the fleet percentages force a massive investment they may or may not have wanted to make. A properly free market would simply let Tesla (I really like calling them "Edison" now, it's much more historically accurate... GRIN...) build whatever the hell they wanted, and Ford, Chevy, whoever, to build whatever they want, and simply compete normally. Musk WANTED to start an electric car company, and WANTED to make those investments, and was handed government money to off-set his costs by making his product appear cheaper than it really is to produce. The fleet percentage along with Musk making a "sports car" also forces the luxury manufacturer with a high end/high dollar gas vehicle to compete against themselves in many ways... they're not going to bring an econo-box to market for their first electric, they have to bring a direct competitor to their own sports line-up to market, and cutting off your nose in spite of your face, isn't too smart in business.
Re-tooling and re-vamping to build a direct competitor to your existing model line-up while still having to build and support that line-up is WAY harder than starting from scratch without anything to support. The folks who designed the percentage system KNEW this. It's not hard to figure out that an "all electric" company has an advantage: It doesn't have to compete with ITSELF.
Remember, there's also percentages for econo-boxes vs. gas-guzzlers too, levied on the "legacy" manufacturers. The "easiest" to tool up for (including your Ford) is the economy end of the line-up because more of them are sold overall. Ford could make your Energi easier than they could make a competitor to the Tesla/Edison, because it wouldn't destroy their own luxury/high-end line-up, but profit margin on the economy end is VERY low. And they'd been focusing BIG BIG MONEY on making the gas stuff more efficient (EcoBoost) to meet the percentage rules INSIDE the gas line-up.
So yes, the regulators stacked the deck against the existing manufacturers by using a quota system both for gas efficiency, and also for number of electrics (Which are really the same rules, but the existing manufacturers had to tackle both problems, Musk only had to tackle being a start-up.)
No, it's not. I don't think anyone who bought an S gives a crap about the tax incentive. They have plenty of money if they're buying it, they don't need the incentive. They just want a really cool, fun car!
Doesn't matter if they "wanted" it. They GOT it. That creates an economic lean toward Musk whether the new owners care or not. And the politicians knew they were doing it, at best. At worst, they didn't read jack crap about what happens in industries where quotas are enacted. There's absolutely no POSSIBLE way to have quotas and not have MAJOR unintended consequences.
No, they started where they were selling cars. Lots of states have mandated-dealer laws in place that prevent Tesla from selling there. If there's not going to be any cars there, why would you build infrastructure for them there first? That makes no sense whatsoever.
Missed the point completely, I see. If you're not yet building infrastructure in an area, why would the Citizens of that area be demanded to pay ANY portion of your business costs? SHARED INFRASTRUCTURE is paid for by taxes. Musks TOYS are being paid for by everyone, and yet, only the rich appear to be benefitting. You know I'm not much of a label person, and don't like the whiny stuff that begets politicians creating massive government programs, etc... but you have to admit, Tesla/Edison isn't exactly catering to the AVERAGE Citizen. Especially before the announcement of the latest model, and even then, selling a car that costs more than the mean income of Americans, while having all Americans pay for decades for the loan interest on the tax credits -- pretty much seems like the most selfish crap morally, that anyone's ever seen in a new car manufacturer.
The jibes at "where the charging stations are installed' was basically pointing out that Tesla/Edison is catering to the dense population centers and well above average income Citizens, a really poor excuse for a government hand-out, overall.
Aspen and Vail aren't on the way to anywhere, so it makes no sense to install a supercharger there. You can plug into a regular charger in your garage and it'll be charged long before you leave, so what's the point of a Supercharger? Or are you really frothing at the mouth so much you can't make sense any more?
Same commentary as above. It's examples of "put stuff where the voters... cough... population are...", the voters who voted for these subsidies specifically, if you notice. The Aspen/Vail comment was more subtle, it was "Well, except for these rich folks... they'll just install superchargers in their garages and anyone traveling I-70 won't be stopping anywhere to charge up."
As far as those two towns "not being on the way to anywhere", are you FKM? I-70 is a MAJOR transportation route! Replace "Aspen/Vail" with "Summit County" if you like, the point was -- why was the major way through the middle of the US not provided the technology. Surely Denverites who go to Aspen/Vail paid their fair share of these subsidies?
The Gigafactory is the difference. Musk himself said that making money on the Model 3 requires a fully operational Gigafactory. Considering they'll be more than doubling the world's Li-Ion battery production, that gives them a huge advantage.
Also, I highly doubt Ford is losing money on any sales, or they wouldn't be selling them nationwide. And they do - I have a Ford Fusion Energi and I know others with Focus Electrics that were all purchased here in Wisconsin. They're a little hard to get because our charging infrastructure isn't as good as it is on the coasts, but they do sell them nationwide so I can't believe that they'd be losing money on them, especially not that much. And Nissan has sold a ton more Leafs, if they were losing that much money on them it'd sink them.
The Tesla factory, when it belonged to GM/Toyota joint venture NUMMI, cranked out 500,000 cars a year. They'll certainly take some time to ramp up to that kind of production, but I think they should be able to get through 200,000 by maybe mid-2019. Of course, now they're up to 325,000 so I would imagine new orders now are probably into 2020 delivery times!
You missed the overall point again here, also -- the point is... Musk wouldn't be nearly as far along toward even needing a "GigaFactory" if he hadn't gotten a guarantee that his product would be able to be sold to his buyers at a SIGNIFICANT discount, funded by taxpayers. That the new owners supposedly "don't care", I seriously doubt... people don't just say, "Oh well, this electric car costs $10,000 more than the gas one, but I 'don't care'. Try it.
Let's say magically overnight some politician decides to go against populism and wreck their career, and they introduce a bill to claw back every electric car tax break given thus far, and it somehow gained enough traction to make it to a Congressional vote... imagine the absolute freak out that would ensue. I think that adequately covers your assertion that people "wouldn't care"... they'd lose their minds.
Without those hand-outs of tax breaks paid for by increasing government debt, Musk wouldn't be where he is today.
Should he be? Only the populists know for sure from minute to minute. Handing him the money certainly wasn't based in any particular moral decision. Politicians created him a market and handed him profitability a decade sooner than he would have seen if he had to do it without subsidies.
He's the "new normal", he's not a truly private capital funded business, and he's not a government contractor -- he's somewhere in-between, needing both to make his nut.
Whether he deserves his customer's money, there is no question: He does. They could always have purchased whatever they wanted. Especially Model S owners. They're not the low-end.
Whether he deserves a subsidy from every Citizen: Murky. Likely downright immoral, considering his vehicles aren't anywhere near the "transportation needs" level, and are way closer to "transportation wants" on the need vs want scale. I can't think of a reason that anyone NEEDS a Tesla/Edison. And they're not priced or built in such a way as to be "generic transportation" for the masses... and yet, the masses will be paying for him to be profitable, to a degree. Seems like ANY degree of public support for a toy, is more morally wrong than it is right.