GM – and Tesla – just publicly admitted that they can’t sell electric cars. Or rather, they need your help – via Uncle.
To pay people $7,500 each to “buy” their electric cars.
To be paid by those who pay the taxes which will make up for the taxes not collected from the people who “buy” electric cars. This is the wealth transfer scheme styled “electric car tax credits.”
Great sums of money were expended to extract great sums of money – via the tax code, which was adjusted to give preferential treatment to the purchasers of electric cars by making electric cars seem more affordable than they are, in fact.
In order to create the fiction of a “market” for electric cars, where none – or very little – actually existed.
If that were not the case, then why the need to pay people to “buy” them? In every other case of such massive discounting – an industry term – the need to apply such discounts is taken as evidence of the car being discounted being a flop.
Get rid of them by whatever means necessary – as by giving them away – and then build no more.
The Aztek being a for-instance. Imagine being paid to buy one. Of course, the difference with EVs is that instead of GM paying you to buy an Aztek, the government is making someone else pay for your electric Aztek.
No one would abide such a thing, much less laud such a thing. How come almost no one is questioning this thing?
That question is hardly ever raised – much less answered. Probably because of the answer. Electric cars are the Azteks of our time, but worse. And unlike the Aztek, which was merely ugly – electric cars are evil. A kind of cancer that is not only metastasizing but being encouraged to metastasize.
They don’t go far – and they cost far more than most people are willing to pay for them – and accordingly, most won’t pay for them, if the cost isn’t reduced somehow.
Since electric cars are very costly – even with the subsidy – it is generally wealthy people who buy electric cars, as an indulgence – by definition, since they aren’t economical.
And to signal their virtue.
It is generally the not-wealthy who don’t buy them – not being able to afford expensive indulgences – but who do pay the full freight of what are styled “their” taxes – which help finance the loss of taxes paid by the affluent, to help them afford their still-expensive electric car indulgences.
Of course, Tesla – the head bird wetting its beak – claimed it didn’t need the assistance of government pull to “sell” its electric cars, probably because of what it implies about the mass-market viability of electric cars without the pull.
The problem is that Tesla has never been able to make any money selling electric cars. It takes money, selling “credits” for building them to other car companies, which are under duress to buy them in order to meet their government-required quota for either building a certain number of “zero emissions” cars themselves or handing over money to Tesla in exchange for “credit” equivalent to building them.
When the $7,500 tax credit went away – which happens when a production threshold of 200,000 electric cars made is reached – it becomes much harder to sell more electric cars because now people have to pay the full cost, rather than offload a large chunk of the cost.
This has made Tesla more reliant on the taking of cash in exchange for “credits” to keep itself in “business” – in air quotes to emphasize the etymological absurdity of a “business” that is unable to sell its products on their merits.
GM – and other big car companies – have gone all-in on electric cars – the making of them, in anticipation of a vast “market” for them, created by pull. By the same species of “zero emissions” and similar “green” government mandates that have confected a “market” for Elon’s cars . . . and his “credits.”
Only more so, now that Joe has been (s)elected and has promised to mandate an even larger “market.”
But when GM and the others are making the required number of electric cars themselves – irrespective of the actual market for them – they no longer needs to pay Elon Musk to make them, instead. Which leaves Elon with a money problem – and GM (and the others) with a sales problem.
The pull of the mandates can cause lots of electric cars to be manufactured. Indeed, the gravitational force of pull can cause everyone making cars to make electric cars – because they have to.
So, they must be “helped” to “buy” them – using more of your money. GM and Tesla want the 200,000 car cap lifted, so that everyone who buys an electric car can make other people pay for them.
Assuming you pay what are styled “your” taxes – and haven’t bought an electric car, yourself.
And the rest of the evil part? That part comes into play when people are forced to buy electric cars – because not-electric cars have been forced off the market, by the same “mandates” that are creating an artificial “market” for electric cars.
. . .
Got a question about cars, Libertarian politics – or anything else? Click on the “ask Eric” link and send ’em in!
If you like what you’ve found here please consider supporting EPautos.
PS: Get an EPautos magnet or sticker or coaster in return for a $20 or more one-time donation or a $10 or more monthly recurring donation. (Please be sure to tell us you want a magnet or sticker or coaster – and also, provide an address, so we know where to mail the thing!)