Imagine if I bought a Hummer, a high-end, very expensive Hummer or some other very expensive vehicle only the rich can afford. You know them… the kind of vehicles that cost as much as a small home in fly over country.
Hopefully you said… “We’ll, that’s your business.” But what if I also got a hefty tax credit for doing it. All of a sudden it would be everybody’s business… Joe average tax payer subsidizing the rich buying cars from rich corporations.
Buy an EV (electrical vehicle) and you receive a $7500 tax credit. Elon Musks’ Tesla business model was designed around that fact and even then… can’t operate in the black. A 2017 Tesla Model S sedan costs between $69,500 and $140,000.
But Elon, and General Motors have a problem. The gravy train is reaching the end of the line. The subsidies by law cover the first 200K cars from each manufacturer and then is phased out. Tesla and GM find themselves on that threshold. This will make them actually have to compete with other EV makers who haven’t reached that threshold (not to mention non-EV models).
Elon’s miscalculation (one made by the entire green energy and product industry) is that their business models generally require the gravy train to be non-stop. Had Hillary Clinton been elected that would have been a safe bet along with a lot of other socialist and crony capitalist schemes.
Elon Musk is a snake oil salesman (the likes of Al Gore). He is the proverbial wizard behind the curtain, and his %&$@ is about to hit the fan. He’s already scrambling with layoffs, and claiming internal employee sabotage, etc…
The writing is really on the wall (Tesla being the most shorted stock in the U.S…) but with the deification of Musk by the left they’ll never see it coming until the very end. Tesla is Solyndra on steroids. Musk will walk away with billions, blame everybody and his dog for the fiasco and continue to donate a lot of money to leftist candidates who funneled all that money his way. And YOU (the tax payer) made it possible.
But I digress, enough about this asshole…
The gravy train (subsidies) never should have existed... but that is what happens in Democratic administrations. The gravy train should have been de-railed with the tax reform last year… but Republicans are pussies and that is what happens (or doesn’t happen) in GOP administrations.
Third time’s the charm? We’ll see.
This will actually be a key test (in my opinion) of Trump really proving that he means what he says when it comes to “draining the swamp”. Every bit of Washington will be against him on this. The left would like the EV gravy train to go on indefinitely in the name of leftist, green, ideology. The Republicans are either 1) in total agreement or 2) pussies.
So, this crap going away isn’t a done deal by a long shot… but it should be.