Tesla CRASHES
Tesla CRASHES
And no, I’m not talking about an autonomous vehicle hitting a wall or
driving off a bridge. Instead, Tesla stock has taken a nose-dive and
crashed. Hopefully, their stocks have an airbag to cushion the blow.
According to The Register:
Tesla’s share price took a dive Thursday morning asThe potential removal of these federal tax cuts has a significant influence on consumers.
Republicans in Congress revealed they were planning to kill off a US
federal tax credit for electric vehicles.
The proposed House tax bill calls for an immediate repeal of the
$7,500-per-vehicle credit: something that would have an immediate
knock-on impact for Tesla given that it only produces electric cars.
Its share price fell more than seven per cent to about $296 apiece
from Wednesday’s $321. The draft law emerged as the Elon-Musk-led
automaker announced its worst-ever quarter, recording a $671m loss and
admitting it had not met its production target for its new Model 3 car,
producing just 220 of them against its 1,500 target.
In Georgia, for example, when the state legislature “cut its $5,000
tax credit” the sale of electric cars decreased from “1,400 a month to
just 100 a month in response.”
In other words, consumers care less about the environment and more
about their wallet. Tesla knows this. Their website even factors in the
federal tax credit in Tesla’s pricing.
The Bill has not went through Congress but “is seen as a blueprint
for the Trump administration’s tax shakeup” for further reform:
Scrapping the leccy car deal will increase US taxWhile their stocks have decreased significantly, Tesla is not the only car company that will suffer.
revenues by $4bn, it is estimated. That’s a good saving seeing as the
Republicans are desperate to balance America’s books while cutting the
corporate tax rate.
Under the process the Republicans intend to use to pass their tax
reform bill, it is necessary for the country’s figures to balance – any
cuts have to be met with additional tax income. So far, the plan is
expected to cost the Land of the Free $1.5tr over 10 years.
The latter stated, “Tax credits are an important customer benefit that
can help accelerate the acceptance of electric vehicles. Because General
Motors believes in an all-electric future, we will work with congress
to explore ways to maintain this incentive.”
Or, you know what you could do GM? Stop relying on the federal government as your business model.
They’ve already bailed you out once…now you’re relying on them for marketing and consumer strategy?
Maybe you should invest a bit more money on product and market
research, advertising, etc. instead of expecting a tax credit from other
people’s money to drum up sales.
No one–not a business or an individual–should ever become dependent
on the government; especially not a large corporation like General
Motors.
What is your opinion of electric car companies dependence on tax
credit for sales? If you don’t have a market, can you really expect the
government to create one for you?
