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Passages

(1,080 posts)
Mon Nov 18, 2024, 09:35 AM Monday

Tesla's Bid to Pull Up the EV Ladder

The rumored end to the $7,500 federal rebate for electric vehicles sounds like it would hurt the nation’s biggest EV maker. Quite the opposite, actually.

by David Dayen
November 18, 2024

The $7,500 federal electric-vehicle rebate was always likely to be the most endangered of the Biden administration’s clean-energy investments. Tax breaks for building factories at least creates jobs and, perhaps more important, corporate stakeholders. But the EV rebates benefit consumers whose lifestyle choices are coded as liberal. States that didn’t vote for Trump lead the way on EV adoption. This fits with the “punish my enemies” imperative of the Trump administration.

But there was a hitch here: Elon Musk decided to become Donald Trump’s biggest and wealthiest fan. For a moment, you could see the EV rebates sticking around. After all, nobody has thrived more off those rebates, including the ones in place before the Inflation Reduction Act, than Tesla.

Unfortunately, that is not the logic of the would-be monopolist. You look around at you and your competition and wonder who would be hurt the most by a government action, and if it’s everybody else, you endorse it. That’s the logic behind Tesla’s apparent support for eliminating the rebate: essentially pulling up the ladder after climbing it themselves.

Reuters was the first to report that the EV rebates would be on the way out, and that Tesla has told the Trump energy transition team—which includes none other than oil billionaire Harold Hamm—that it would be OK with that. Ending the rebates would position Trump on the side of Big Oil, but it also helps, in a small way, to solve a burgeoning fiscal problem.
https://prospect.org/economy/2024-11-18-teslas-bid-pull-up-ev-ladder/


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Tesla's Bid to Pull Up the EV Ladder (Original Post) Passages Monday OP
We will never return to the age of combustion engine dominance. CoopersDad Monday #1
I'm amazed anyone would give that creep a nickel of their money. BannonsLiver Monday #2

CoopersDad

(2,880 posts)
1. We will never return to the age of combustion engine dominance.
Mon Nov 18, 2024, 11:11 AM
Monday

EV incentives were never intended to be permanent and anyone following closely knows that they phased out for any given model after the sales of X units per model was met.
Tesly and others gamed the system by reworking models to restore the $7500 credit.
Last summer I used the credit to buy a basic Model 3 before the incentive ran out.
This past summer I traded up to a Long Range Model 3 when I learned that the incentive was back based on changes in where the manufacturing took place. The point being changes to a makers line up have extended the life of the program.

What is Tesla up to if the incentives end entirely?

The charging network, that's what. Just as gas cars require a vast number of gas stations, so do EVs require a network of charging sites. While there is competition from other providers, Tesla Supercharger sites dominate the landscape and guess what?

They can charge whatever they want per kWh. Lately I'm paying 49¢ on the road, twice what I pay to charge at home.

Can it go higher? Sure it can. So, Tesla doesn't even need to make cars any longer (but they will), they have a near monopoly on the charging infrastructure.

Fossil fuel interests don't have much in the game either way. Most of our power (nationwide) comes from natural gas, so they aren't hurting under EV adoption.

https://www.eia.gov/todayinenergy/images/2024.02.22/main.svg

BannonsLiver

(18,003 posts)
2. I'm amazed anyone would give that creep a nickel of their money.
Mon Nov 18, 2024, 12:18 PM
Monday

I know some people are EV enthusiasts and are excited about them, and I know people seem to like Teslas, but that’s a bridge too far for me. I’d never stop thinking of Blowfeld every time I drove it. But different strokes. I hope it is a good vehicle for you.

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