Spero News: On April 10, news came that the stock price for Tesla closed at $312.39, thus making worth ostensibly more than General Motors. Tesla sold fewer than 80,000 cars in 2016, its banner year, while General Motors sold more than 80,000 Chevy Silverados every two months. Some analysts contend that investors who had bought Tesla short are now seeking to cash in, thus leading to the current high-water mark for its stock value.
Tesla is supported by tax dollars from the federal and state governments. Federal taxpayers kicked in $7,500 to lower the costs for the first 200,000 vehicles. read more
Green technology and electric car initiatives are political, not based on economic product development principles. Why would anyone want to put the electric companies, with their regional monopolies, in the transportation market?
1. A major economic question regarding the source of a key element needed for electric cars: Lithium.
The United States produces only 8% of Lithium in the World. China 13%, Chili 31%, and Bolivia 34% = 78%. All others are mostly from South America and Africa.
Considering the United States, the Trump administration has a goal to achieve energy independence, it appears that battery powered cars using Lithium-ion will one day need an energy cartel like OPEC to keep manufacturing goals.
2. There is also a question the issue of safety. There are several published articles regarding the explosive nature of Lithium-Ion batteries whether in a Samsung phone or Tesla.
Lithium by nature is a corrosive element that is unstable when exposed to humans. Fire departments are now undergoing special training for the use of alternate fire retardants and extinguishing agents for Lithium-Ion batteries.
3. There is also a cost of replacing Lithium-Ion batteries when the battery reaches its charge-discharge life cycle and the warranty has expired. There are several customer complaints regarding the trade-in value of a Prius that was at the end or near the end of the charge-discharge life cycle of the battery.
4. The cost of operating an electric car, like gas-powered cars, is dependent on where you live in the US since Kwh rates differ widely from state to state.
5. There are also infrastructure concerns to support the limited range of electric cars and the time to fully charge the vehicle. Most charging stations for the home require hours to fully charge an electric car that has a 200 mile range. Of course, charging systems that could charge a car faster will burn Kwh’s at a faster rate, thus, adding to the expense. It was recently reported that Tesla would have to pay $8Billion dollars for a fully integrated charging system. This assessment caused the Tesla stock to crash.
6. Then there are government subsidies. Tesla is about to run out of subsidies, however, tax credits may be around for a while. This is, however, a financial black hole when you consider the trade-in value of an electric car that is at the end of the charging-recharging cycle as noted above.
Green Car Reports concludes: To sum it all up … “we worry”.
There are other issues that come to mind not withstanding the fact that range is, and will be for some time, a limiting factor for electric cars. My concern here is that the electric companies are expanding it’s financial interests in transportation.
7. With gas or diesel powered vehicles the driver has several options as to where he/she buys fuel. Either based on price, location, or chemistry. Regardless as to who provides the charging station (PG&E or Tesla), the electric company is the only source/option available for electric car buyers, unless you hook up to a solar powered station or wind power that have limited kwh output. The time to fully charge a Tesla, for example, varies based on the Kilowatt output.
8. Because the percentage of electric cars is very small in today’s marketplace, the electric company is offering discounted rates for certain locations and time of day charging usage. How many times have you seen utility rates drop? Never!! So, if and when, the percentage of electric cars increases, how long will the electric companies provide discounted rates when they see they’re margins getting smaller?
9. Since nuclear power generation is leaving California, what about “brown-out” conditions when electric power usage takes off in August-October and the utility company requires reduced usage? What will be the economic impact, and availability, for charging your car at home during these shortages even if the charging takes place in low peak timeframes?
I would consider purchasing an electric vehicle, but I want a trailer hitch on it so I can pull a trailer with a gas-powered generator, in case I get stuck somewhere with dead batteries.
When automobiles were first created, there were 3 types of propulsion systems available: steam, electric, and gasoline. Without any government intervention, the marketplace quickly sorted out the most practical and efficient method: gasoline engines. Now the “powers that be” want us to go back to one of the rejected methods. Well, why not steam? Makes as much sense to me as a crappy electric car.
Just sayin’.
The feel-good smugness a leftist gets when driving one of these status symbols must be like the feeling a con man gets after bilking an old lady out of her life savings.
I have heard Rush Limbaugh explain why stock for Amazon is worth more than stock for Apple, even though Amazon has never really made money and Apple has made tons of money: Apple really has no room to go up, whereas Amazon has lots of possible room to climb. Not that it will, but that it has room to do it.
That may be why Tesla stock is worth more than GM’s. Short of going out of business, Tesla only can only go up. GM, while not doing great, has plenty of room to fall and not much room to go up.
Putting in a Tesla dealership right on I-10. just down from the Dominion – homes for the local CW performers, Spurs team members, San Antonio politicians, drug cartel members, and other forms of the idle, golf-playing entitlist.
Not th+at there’s anything wrong with that, but I thought it was better as a Ducati dealership.
We cannot afford this shit and it’s not up to the damn gummit to pick winners and losers. Cut off all Federal subsidies, let the market place decide.
I just wish Mr. Tesla was still here.
I am convinced the world would be a better place.
I’m also convinced the greed of those in power is why we don’t benefit from his work now.
A woman my son knows accidentally parked her Tesla a foot deep in mud at the equestrian facility where they were. The car was so light, he and another guy just lifted the front end of the car and walked it back out of the mud. No sweat. Like a toy car.
I’d hate to be in an accident in that car with anything of substantial weight.