California contributes to Tesla's success in the state. Thanks go to the taxpayers.
At $90,000 or more, the Tesla S sedan presents lots of 'ordinary' for all of that money. But California gives buyers $12,500 in tax credits, putting the car barely in the buying range of ordinary folks, even with government largesse at tax time.
Tesla must have been the darling car in the eyes of CARB (California Air Resources Board). So enamored of the zero-emissions vehicle, CARB requires that 1.5 million cars on California roads by 2025 be ones that emit no carbon, never mind their inefficiency, limited range, difficult recharging, heavy weight for size, and air quality improvement at less than an iota.
Carbon -- the much maligned atom in that much maligned molecule, CO2 -- is fingered as the man made cause of global warming despite evidence to the contrary. If you believe the hype, it is you driving your hydrocarbon-powered vehicle that makes for every malady imaginable from resulting rising global temperatures, never mind that the world hasn’t warmed in the last 17 years, and global warming actually isn’t. But don’t tell that to a Tesla owner, especially one who hails from CA.
Tesla figures prominently among eco-fanatics who think that by not burning fossil fuels in their all-electric vehicles they are saving the planet. They ignore the fact that electricity in their Tesla’s batteries came from burning some kind of hydrocarbons in a power plant. That point is beside the point for Californians.
Such self-delusion goes a long way in justifying the inordinate expense of the purchase while horrifying the taxpayers who paid in part for every Tesla owner’s car. These people include the middle class and poor, who subsidize California's elite in their choices for private eco-vehicular transportation while the rest of us hail a bus.
Tesla will rake in $250 million by year’s end selling their ZEV credits. What’s a ZEV credit? When auto manufacturers fail to meet CARB’s standards for zero-emissions vehicles, they are forced to buy ZEV credits from other manufacturers. Enter Tesla, the market leader in ZEV credits.
Tesla does well by the favoritism established by CARB standards, ZEV credits, and federal tax credits, from which the company makes between $25,000 and $35,000 for every Tesla it sells. Multiply that by the 20,000 vehicles it expects to make in 2013 along with 40,000 cars as expected production in 2014. So, here is America’s taxpayer poor subsidizing elites and pulling in profit for Tesla to the tune of about $2 billion in two years. All, while California hurtles toward bankruptcy.
That’s the price we pay for the eco-lunacy from which crony capitalists in the government’s favor make money while folks like my upstate friend, Susan the seamstress, foots the bill. “Hmm,” she said, “I have renewed fondness for my Ford pick-up.”