Comment Re:The supply chain problems are real (Score 1) 66
And that's before the uncertainty around rare Earth minerals which are absolutely critical to the battery in that EV.
Nit: To the best of my knowledge, there are no rare earth minerals in EV batteries. They are, however, used in a lot of EV *motors*. Lithium, cobalt, manganese, iron, etc. are anything but rare.
Folks have not really fully grasped just how much of a fuck up electing Donald Trump was and is. I think the scale of the fuck up is a little bit too large for most people to comprehend. Trump has done as much damage in 10 months as a Republican president usually does in 8 years. We also did not get the usual 8 years of Democrats fixing the previous Republicans disastrous policies.
The full extent of the damage will take years to fully appreciate. That's half the reason people like him get elected. By the time the full extent of the damage is know, you're two presidential cycles later or even three.
Given all the uncertainty and the loss of the 7500 tax credit yeah there is no way in hell anyone can sell EVS profitable unless they're using slave labor to build them like China does.
It's really not *that* bad. They just have to sell them for more money. The tax credit doesn't magically make them unprofitable unless they haven't paid off the R&D costs. Otherwise, it just reduces their sales volume or forces them to take a lower profit per unit to keep the volume up.
Meanwhile Tesla is about to give Elon Musk 1 trillion with a t dollars. It's not just more money than the company has ever made it's more money than the company ever can make. It took them 20 years and constant government subsidies to make 43 billion in profit. To pay Elon Musk will take 200 years.
It's stock. It's funny money.
For any other company the stock price would be cratering right now as people sell out as fast as they can but so many people bought in when Tesla was already overvalued that nobody wants to be the one that pulled the trigger and start the downward spiral. Everyone is hoping to get out and give it over to a greater fool. So it's a Mexican standoff.
Not at all true. The numbers are kind of nuts, but they are also tied to growth targets, so if Tesla doesn't grow, he doesn't get anything. It doesn't really devalue the shares, and this style of compensation scheme is pretty typical, though again, I won't argue that the numbers seem questionably high.
The whole electric car market is poised to collapse. China might keep it going thanks to the aforementioned slave labor but without that there's nothing to sustain it anymore.
It already did, at least in the U.S. As soon as the tax credit expired, buying cratered. The company most likely to weather this is Tesla. Tesla already lost their tax credits, and their sales didn't crater before, so they probably won't crater this time, either.
But the rest of the industry? Dealers at the major car companies want to *avoid* selling EVs, because they don't get all that lucrative service business — oil changes and brake jobs and oxygen sensor replacements and so on. They have no incentive to sell EVs, and without tax credits to push people to choose EVs, sales dry up.
In other words, Ford ditching their electric trucks is *entirely* plausible. (I could maybe even see Tesla ditching the Cybertruck, because its sales suck for... let's just say design and implementation reasons.)