Quote:
Originally Posted by GGG
I don't think so.
While eliminating subsidies long term may delay adoption by the masses until $140 instead of $120 right now electric cars are a luxury good and a status good. So even the low cost Tesla the Delta between it and another luxury car is a trip to Mexico.
So targeting the upper middle class it should be fairly price insensitive.
The expansion of the market will take longer but the real problem with that outside of the NE and West is the infrastructure build out. Essentially Canada's problem. The middle of the country is too big and not enough people.
The other problem is an electric car fueled by coal is worse than a gasoline engine. So the benefit of an electric car in a Coal fired incremental power world is negative.
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I'm not talking about the $100 000 Tesla's though. Their new model, and Chevy and others are aiming for the $30-$35k mark, post subsidy. Now some of those subsidies are up to $10k I think. So it is going to be a big price difference if they are gone.