Tesla share crash amid Republican bid to kill off electric car tax break
Editor's notes: Reading the above headline gives one the impression that Tesla is failing, in part, because of Republican efforts to cut off electric car subsidies.
Here is the truth: Elon Musk does not want the subsidies and has led a push to get rid of these federal gifts.
Advice from a uto industry expert:
On
the [1st quarter] earnings call, Elon Musk delivered an impassioned plea that the
federal electric car subsidies hurt Tesla relative to other automakers.
Pro tip to U.S. Congress and President Trump: Here’s a subsidy that the alleged beneficiary is effectively begging you to abolish.
As it stands, after the first 200,000 cars, there is an unlimited number of subsidies available, constituting an unlimited multi-billion-dollar exposure to the federal budget.
For the sake of all that is fair and budget sound, this electric car subsidy must be abolished immediately, saving the federal treasury billions.
All electric car subsidies and mandates also induce malinvestment by other automakers, generating losses and eventually plant closures.
Pro tip to U.S. Congress and President Trump: Here’s a subsidy that the alleged beneficiary is effectively begging you to abolish.
As it stands, after the first 200,000 cars, there is an unlimited number of subsidies available, constituting an unlimited multi-billion-dollar exposure to the federal budget.
For the sake of all that is fair and budget sound, this electric car subsidy must be abolished immediately, saving the federal treasury billions.
All electric car subsidies and mandates also induce malinvestment by other automakers, generating losses and eventually plant closures.
"It's a little confusing, because one's a letter and the other's a number." - Elon Musk on 1Q earnings call talking about Model S vs. Model 3Tesla (NASDAQ:TSLA) reported 1Q earnings, and Elon Musk had but one request from the U.S. government: End the tax credit subsidies for electric cars. (read the full article here.)
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