Tesla, the electric car company, is outselling Mercedes Benz and BMW while making a profit.
… in the US. How is it faring globally, or on the main markets for cars on its price range?
Also, it may be unfair to compare Tesla with manufacturers selling mostly non-electric cars. For instance, Hong Kong used to give tax breaks for electric vehicles, but when it stopped the practice early 2017, Tesla sales dropped essentially to zero. Similar benefits provided by governments have given Tesla a lot of help on many markets; for instance Tesla X has become relatively a “budget” car in Norway as a result of preferentialism of all-electric cars. This is not success based on natural competition.
Although Elon Musk is in many ways an inspirational person, it’s interesting to note that both his major businesses at this point, SpaceX and Tesla, are floated largely by government contracts or tax benefits…
Also, it may be unfair to compare Tesla with manufacturers selling mostly non-electric cars.
How so? Is it your belief that BMW could not produce electric cars?
Tesla X has become relatively a “budget†car in Norway as a result of preferentialism of all-electric cars. This is not success based on natural competition.
I am not sure how you define natural competition. There is market demand. Tesla most closely matches this demand.
Could BMW and other car companies not compete for this market demand? Why not?
If your point is that this market demand is being driven by the regulatory climate, then I don’t think it is a valid objection in the sense that all car manufacturers have to deal with the same regulations and subsidies.
foobarsays:
Your points form a perfectly fine view on the situation. I’m just saying that competetiviness of Tesla relies heavily on regulatory and tax policy climate supporting its niche. Surely other manufacturers should also try to achieve success in that niche (all-electric), but it is also very likely that large tax benefits would be scaled back when all-electric vehicles are becoming more mainstream. They did that in Hong Kong already, and there is concern in Norway regarding fairness of regulatory methods which have mostly resulted a market for a single manufacturer.
Other problem with all-electric cars is the environmental footprint of electricity production needed. In Hong Kong it actually polluted more than traditional cars, although it certainly did move the effect away from the streets. For time being, only sufficiently scalable and “green” option for full transition is nuclear power…
To me it’s fine that Tesla seems to be finally succeeding. It’s just the reasons behind success are sometimes less rosy than one would wish for. It would be even better if it would be straight-out competitive with similar car purchase, use and energy taxes as traditional vehicles.
… in the US. How is it faring globally, or on the main markets for cars on its price range?
Also, it may be unfair to compare Tesla with manufacturers selling mostly non-electric cars. For instance, Hong Kong used to give tax breaks for electric vehicles, but when it stopped the practice early 2017, Tesla sales dropped essentially to zero. Similar benefits provided by governments have given Tesla a lot of help on many markets; for instance Tesla X has become relatively a “budget” car in Norway as a result of preferentialism of all-electric cars. This is not success based on natural competition.
Although Elon Musk is in many ways an inspirational person, it’s interesting to note that both his major businesses at this point, SpaceX and Tesla, are floated largely by government contracts or tax benefits…
Also, it may be unfair to compare Tesla with manufacturers selling mostly non-electric cars.
How so? Is it your belief that BMW could not produce electric cars?
Tesla X has become relatively a “budget†car in Norway as a result of preferentialism of all-electric cars. This is not success based on natural competition.
I am not sure how you define natural competition. There is market demand. Tesla most closely matches this demand.
Could BMW and other car companies not compete for this market demand? Why not?
If your point is that this market demand is being driven by the regulatory climate, then I don’t think it is a valid objection in the sense that all car manufacturers have to deal with the same regulations and subsidies.
Your points form a perfectly fine view on the situation. I’m just saying that competetiviness of Tesla relies heavily on regulatory and tax policy climate supporting its niche. Surely other manufacturers should also try to achieve success in that niche (all-electric), but it is also very likely that large tax benefits would be scaled back when all-electric vehicles are becoming more mainstream. They did that in Hong Kong already, and there is concern in Norway regarding fairness of regulatory methods which have mostly resulted a market for a single manufacturer.
Other problem with all-electric cars is the environmental footprint of electricity production needed. In Hong Kong it actually polluted more than traditional cars, although it certainly did move the effect away from the streets. For time being, only sufficiently scalable and “green” option for full transition is nuclear power…
To me it’s fine that Tesla seems to be finally succeeding. It’s just the reasons behind success are sometimes less rosy than one would wish for. It would be even better if it would be straight-out competitive with similar car purchase, use and energy taxes as traditional vehicles.