No Government Subsidy Sees Tesla Sales Plummet – IOTW Report

No Government Subsidy Sees Tesla Sales Plummet

I’m no luddite, and I have no sneaky financial agenda that would have me shilling for big oil. I’d love to wake up tomorrow morning and find the roads filled with magnetic propulsion cars, zipping along with zero emissions, free of fuel costs.

Tesla, as much as the fans and true believers want to believe, is not the answer to what ails us. They are expensive, rely on batteries that are toxic, and they still require the burning of fossil fuels in order to recharge their batteries. The people intuitively know a bad deal when they see one.

I see the “cutting edge” Tesla as the technology we are going to look back on as that impractical placeholder before we got to the real advancement in private transportation. Sort of like the Stanley Steamer.

Tax changes in Hong Kong have revealed the public’s desire for a Tesla when no government subsidies are incentivizing their sale.

Tesla’s Hong Kong Sales Gutted by Tax Change

fox-

Tesla Inc.’s sales in Hong Kong plummeted after authorities slashed a tax break for electric vehicles on April 1, demonstrating how sensitive the company’s performance can be to government incentive programs.

“Tesla welcomes government policies that support our mission and make it easier for more people to buy electric vehicles, however, our business does not rely on it,” Tesla said in a statement. The company said its sales revenue in China, where it faces large tariffs, has risen without government incentives. “At the end of the day, when people love something, they buy it,” it said.

However-

Tesla warns investors in securities filings that such incentives can change and says that “could have some impact on demand for our products and services.” Last year in Denmark, an incentive program expired and was replaced with a less generous one.

Citing increased congestion of privately owned vehicles on its streets, the government said in February that it would be changing the policy so the tax would be waived only on the first 97,500 Hong Kong dollars (about US$12,500) of an electric car’s purchase price for individuals. After the change came into effect on April 1, the cost of a basic Tesla Model S in Hong Kong effectively rose to around US$130,000 from less than US$75,000.

The end of the tax exemption “has really put the brakes on electric-vehicle adoption in Hong Kong,” said Mark Webb-Johnson, a founder of Charged Hong Kong, a group that promotes electric vehicles.

Tesla doesn’t break out vehicle sales by country or region and declined to discuss specifics in Hong Kong. But it acknowledged in a statement a slowdown, calling it “expected” following the tax change and a “short-term” challenge.

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ht/ the big owe

29 Comments on No Government Subsidy Sees Tesla Sales Plummet

  1. “One word Ben, Diesel”….Properly aspirated diesel motors (turbo-charging) will get 50 miles per gallon….fuel is cheaper to produce then gas….

    The problem? is that an engine can last 300K to over a million K and you won’t sell as many cars, therefore the auto industry is for it yet against it…

  2. No coal fired car for me, thank you very much.
    I see nothing but wasted space when I see Tesla charging stations in my area. Maybe they are being used when I’m not looking. But I’ve never seen them used. The whole thing is a scam.

  3. A car powerd by 18650 lipos. 18 diameter by 65 mm long. It takes hundreds of them. Now that tesla is making their own batteries, the size has changed, just enough to make industry standard batteries incompatible. When, not if, your pack needs replacing you have to go to tesla. Good luck fools

  4. Tesla installed eight charging stations in our tiny little community more than a year ago. The only vehicles I’ve ever seen parked in front of one are those who can’t find parking on Main Street.

  5. Check back in a couple months, Tesla is introducing “Model 3”. Sells for around 30K and they have a ton of Pre Sales. I’m no fan, but they do have a market. Also Volvo announced an end to all gas powered cars they manufacture. They will be all electric. I’ll stick with my diesel thank you very much.

  6. Vehicles are mostly purchased to be functional. Not for political statements or vanity reasons.
    Never ever would I buy a battery powered string trimmer, chain saw, or lawn mower. Let alone an automobile.

  7. I have a friend with a Tesla and he has solar panels that generate way more electricity than the Tesla needs.*
    – He basically never has to pay for fuel.

    * Whatever excess energy his solar panels generate earns him credits from the local electric company.

  8. They get their power from electricity. 30% of US electricity comes from COAL. Cracks me up all these libs driving around in their coal-powered cars thinking about how “green” they are

  9. Tesla is a nothing more than a government contractor with benefits, an unusual situation to say the least. Tesla receives government money to develop new tech but does not have to share the new innovations with the government – the profit from the discoveries remain in the company.

    Anything Tesla develops should be public domain since we paid for it.

  10. Elon Musk never met a technology he didn’t steal.
    Like Edison, Musk is user, not an innovator.
    He had O’Baja bamboozled and the halfrican didn’t even know.
    People who work at Tesla say it is an awful place to work.

  11. OpenTheDoor

    Who did SpaceX steal the technology from in the video I linked above? Especially since it’s never been done before? My point being is this guy inventing or perfecting enough technology to make Gov subsidies worth it. The Gov gets that tech.

  12. I did, and it is awesome! But his cars, his batteries, the disposal of the batteries, his entire funding being tax dollars and subsidies makes me not like the guy. And I’d be surprised if the government got his technology. If they did some miserable POS would trade it for campaign contributions.

  13. Joe, well he can’t patent it. So that tech will be spread around. Imagine what could be done with the ability to land rockets like that. Tesla should have never been Gov funded.

  14. For me, the virtue-signaling liberals who think their Teslas are recharged by unicorn farts (and not by the burning of coal) are annoying.

    Also, if a technology requires governmental support, it is not ready for prime time.

  15. @BB, just off the top of my head, ever heard of the Apollo lunar landing vehicle?
    That 50 year old technology is the same the gadfly Tesla uses and covers himself in glory for.
    It’s a lot easier now, the computers are way better, Tesla didn’t make those either.

  16. About those patents. What exactly is “good faith”?

    Annoyed, frustrated and exasperated, Elon Musk has decided to give Tesla Motors’ patents away.
    Well, “give away” might be too dramatic. But on Thursday, Musk did announce that Tesla will let other companies use its inventions under an open-source-inspired agenda at the company. Here’s how Musk put it in a blog post: ”Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.”

    If they don’t believe in your good faith will they sue you?

    https://www.bloomberg.com/news/articles/2014-06-12/why-elon-musk-just-opened-teslas-patents-to-his-biggest-rivals

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