Screw The Masses, Tesla Is Proving That The Money Is In Making EV Cars For The Rich

The U.S. government gives a $7,500 tax credit to anyone who buys one of its cars, but at more than $70,000 for a Model S sedan, only the rich can afford to benefit. The Department of Energy has also provided the Palo Alto, Calif.-based company with a $465 million loan guarantee, which boosts returns for Tesla's wealthy owners while putting taxpayers' money at risk. No wonder many are furious with Washington for "subsidizing cools cars for rich people."

The truth, though, is that selling Teslas (TSLA) to wealthy people today may be the best way to get electric cars to everyone tomorrow, and for the United States to eventually reduce its dependence on oil, with all the national security and economic benefits that entails.

 

jeffy210 - 5/13/2013 7:29:57 PM

+1 Boost

This is one case in which "trickle down" works. Look at how many innovations started on the S-Class which are now common on even the most basic entry level cars.

Usually when it comes to technology, you have your early adopters who are willing to spend money, which in turn refines the technology, and works towards finding ways of producing it cheaper.

JMB1013 - 5/14/2013 10:23:45 AM

+4 Boost

"Please explain... I don't know on 1, let alone "many""

Well, there's the first with electronic ABS, first with inertia-reel seatbelts, first with airbags, first with electronic stability control and first with keyless entry just to name a few.

Anyways, don't want to interrupt insightful talk about government, billionaires, crony capitalism and wet dreams.

nguyenvuminh - 5/13/2013 8:11:36 PM

+3 Boost

Ironic how 009's political leanings have been towards the Republican and their argument for maintaining tax breaks for the rich, their savings/investment will create products and jobs. I would venture to guess Tesla's technlogy, product and business practices will do the same, so why is it a problem with Tesla? Or is it because Tesla gets this treatment under Obama? I know I can't change your mind if you didn't vote for Obama but I just want to understand why is it a problem now?

HoustonMidtown - 5/14/2013 4:09:03 PM

+3 Boost

Ummm...he said trickled down from the S-Class......where did you read that Tesla introduced that stuff....reading comprehension much....

jeffy210 - 5/14/2013 5:43:20 PM

+1 Boost

I don't care to feed trolls, but my point was that you usually find innovations on higher priced cars that eventually work their way into lower end cars. I used the S-Class as an example because it spawned so many.

To draw the parallel (since you obviously can't), what we will most likely see is innovations in Telsa's electric components (chargers, motors, batteries, etc.) eventually work their way into lower priced EV cars.

ParadoX - 5/14/2013 4:21:39 PM

+2 Boost

Money is in luxury brands period. Margins on luxury vehicles are much higher than on mass market vehicles.