Even if Tesla is making headlines on a regular basis with regard to its flabbergasting market cap per car sold, the “economic miracle” behind the so-called green company is in reality relying on government subsidies/taxpayers monies and that’s confirmed by the latest developments in one of the most progressive countries in the world. Enter Denmark, where the government recently dropped taxpayer subsidies for Tesla vehicles.
What’s up with that, you may ask? Well, to put things into perspective, judging from ACEA’s latest figures (ACEA stands for European Automobile Manufacturers Association), Tesla is doing very well indeed in socialist European countries, the likes of Germany where Electrically Chargeable Vehicles sales soared 78% in this years’s Q1, not to mention the very eco-friendly Sweden with 80% or even Belgium’s meager 40%. Generally speaking, Tesla/Electrically Chargeable Vehicles sales numbers have risen 30% across the EU, except from Denmark where they totally cratered.
And that’s due to the fact that Denmark’s government cut the subsidies for Tesla vehicles, hence Electrically Chargeable Vehicles sales figures imploded.
As Elon Musk and other crony capitalists (read Solindra et al) know so well, clean energy is awesome, just as socialism, until other people’s monies run out. Basically, without tax-payer based subsidies, Tesla would go into the ground in two shakes of a lamb’s tale. And that’s because so-called clean energy based vehicles are not economically feasible, but just another government sponsored program which makes a few people very rich while piggy-banking on our virtue-signaling weakness.
The Denmark-Tesla situation is representative for the abysmal tech/cost ratio when it comes to clean energy vehicles/Electrically Chargeable Vehicles. Green energy pioneers are completely dependent upon governments all across the world, as taxpayer based subsidies are of critical importance for all forms of renewable energies, including wind, power and unicorn-tears-based gizmos like Tesla cars. Denmark’s infatuation with so-called green vehicles is well documented: in 2015, Danish people bought 5298 EVs, which is twice as much as Italy. The thing is, Italy has a population 10 times larger than Denmark.
However, these outstanding sales figures have everything to do with price and convenience and very little with environmental concerns. Electric cars imports were wavered from the aberrant 180% import tax Denmark imposes on all vehicles powered by internal combustion engines. When the tax break on electric vehicles was eliminated, the market demand for Tesla cars was basically killed/nuked:
While Tesla sold 2738 EVs in Denmark in 2015, in 2016 the number dropped to only 176 units, which is a 94% reduction. Because the price tag trumps environmental concerns even in Denmark. Make no mistake: if governments around the world would follow Denmark’s example, the green-energy market, including renewables, Tesla cars et al would crash instantly.