Tesla’s Model 3 is practically turning into a welfare program. The company is banking on a slew of federal and state subsidies to decrease the cost of it’s model 3 from $35,000 to around $9,500 for the most qualified customers in California. The lifetime value created per customer does not exceed the amount being used per customer for subsidies, meaning it’s a net drain on taxpayers. According to an analyst from Seeking Alpha, the company is trying to apply subsidies for those below 300% of the poverty line. Seriously, this company is starting to annoy me. I like Space X because the company is actually making NASA more efficient and high-tech; however, Tesla I just can’t agree with. Toyota and Honda would drive Tesla out of business with their hybrid automobiles but Tesla is being propped up by a Keynesian government aggressively trying to “combat” carbon emissions.
If consumers are, at the very least, duped into taking the subsidy bait, they will back out at the thought of their car spontaneously exploding or blowing up their house due to the potentially lethal battery running the car. Electric vehicles have been around since gas-powered vehicles and I’m pretty sure there’s a reason society has overwhelmingly chosen gas-powered vehicles over the past hundred years… If you want to support the environment, buy yourself a hybrid vehicle, a technology that has phased out subsidies and will save you more money in the long-run. Better yet, forced-induction vehicles are now becoming the norm for many companies because they’re equally as powerful and have way more gas efficiency than their naturally-aspirated forefathers.