MCViewPoint

Opinion from a Libertarian ViewPoint

How Desperate Is Elon? – EPautos – Libertarian Car Talk

Posted by M. C. Fox on August 19, 2018

It is that (Obama inspired in this case) central planning thing again.

He has singlehandedly perverted the market for electric cars – which aren’t an intrinsically stupid idea – by stupidly building them to be high-performance and luxurious, which has made them much too expensive to be anything other than low-volume indulgences for the virtue-signaling affluent. And – because of the Lemming Effect – steered almost every other car manufacturer in the same stupid direction.

https://www.ericpetersautos.com/2018/08/17/how-desperate-is-elon/

By eric

Elon can’t sell his cars – so he is suing to make people buy them.

Or at least, suing to compel the government to keep on paying people to buy them – if that distinction amounts to any meaningful difference.

Canada had a law – like the one in the U.S. – which greatly subsidized the individual purchase of Teslas and other electric cars via rebates bestowed upon those who did buy them. These purchaser subsidies amounted to several thousand dollars each, and worth a lot more to Tesla, et al, since without them the incentive to buy an electric car dims considerably.

When the subsidies dried up in Denmark, so did Tesla’s sales – by 94 percent. That’s not a typo. With the subsidy in place, 2,738 Teslas were sold in 2015. With the subsidies gone, 176 Teslas were sold the following year…

Elon’s language is always a little fuzzy. The subsidies are not “taxpayer-backed,” which implies something akin to consensual approval. They are government enforced transfer payments, the funds mulcted from unwilling taxpayers. What the government “gives back” – i.e., the subsidy – is taken out of the hide of some other victim. And the receiver of the subsidy is artificially advantaged at the expense of someone else.

In any event, when the government of Ontario, Canada announced this week that it planned to eliminate the subsidies  for EVs – at least, those which pay people with other people’s money to buy Teslas – Elon and his lawyers ran to the courts for succor. Time to call Saul!…

The real harm has been caused by Elon.

He has singlehandedly perverted the market for electric cars – which aren’t an intrinsically stupid idea – by stupidly building them to be high-performance and luxurious, which has made them much too expensive to be anything other than low-volume indulgences for the virtue-signaling affluent. And – because of the Lemming Effect – steered almost every other car manufacturer in the same stupid direction.

There is only one electric car on the market which stickers for less than $30,000 – and only does so by $10. It is the $29,990 Nissan Leaf….

Marie Antoinette is said to have suggested that starving Parisians ought to eat cake – but she at least had the decency not to insist they pay for her cake, too.

Be seeing you

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