Ontario was right to eliminate electric car subsidies

petros

The Central Scrutinizer
Nov 21, 2008
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Many people mistakenly believe that electric vehicles, including Tesla models, run on electricity. That’s partly true — power stored in the batteries makes the wheels go around. But while electricity (in part) powers the cars, government subsidies get them built. But in Ontario, Premier Doug Ford has cut the subsidies (up to $14,000 per vehicle) that drive electric car purchases.

In response, Tesla, led by CEO Elon Musk, sued Ontario, claiming a case of “unjustified targeting.” This month, the Ontario Superior Court agreed, basically saying the government singled out Tesla for harm.

But Ford should stick to his guns — electric cars have been an expensive boondoggle for decades, using taxpayer dollars to subsidize wealthy buyers so they can signal environmental virtue, while doing virtually nothing for the environment.

The first commercial-scale electric vehicle appeared late last century in California, thanks in part to a state mandate aimed at pollution control. But only buyers who made more than $100,000 U.S. per year were eligible to lease the vehicles (they were not sold). Buyers also had to install $2,500 charging stations in their garages (meaning they were also wealthy enough to own detached homes — in Los Angeles).

All this for a car with a top speed of 120 km/h and a range of about 80 miles on an overnight charge. Eligible buyers received up to $8,400 worth of rebates and tax credits, partly funded by middle-class taxpayers and renters who couldn’t buy the car.

Times have changed, of course, and technology has improved. The Tesla Model S has a range of more than 300 miles and can do 1 to 100 km/h in 2.7 seconds. But the affordability issue hasn’t changed much, with the Tesla Model S P100D selling for a cool $176,000.

Tesla has promised accelerated deliveries of lower-priced Model 3 vehicles, which start at “only” $56,000. Meanwhile, Ontario taxpayers have been paying to get electric cars on the road.

In 2016, according to the CBC, Ontario paid nearly $800,000 in rebates for electric cars with “six-figure price tags” including $170,000 to subsidize the sale of 20 Tesla Roadster convertibles that retailed for $138,000.

To be fair, subsidies to other high-end electric cars, such as the BMW i8, are equally egregious, though I have not read that BMW plans to sue the government. And there remains little or no environmental benefit if the power generation for electric cars isn’t greenhouse gas emission-free (and in most places, it’s not).

Finally, a study for the Montreal Economic Institute pegged the cost of emission reductions from electric vehicles at an estimated $523 per tonne of averted GHGs — an absurd number, when carbon offsets in North America were selling for about $18 per tonne.

Premier Ford should stand his ground and stop paying for rich people’s expensive electric cars. That Musk sued to preserve his subsidies is prima facie evidence that he knows there’s no market for his cars at full cost.

Kenneth Green is an analyst at the Fraser Institute.
 

Mowich

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Many people mistakenly believe that electric vehicles, including Tesla models, run on electricity. That’s partly true — power stored in the batteries makes the wheels go around. But while electricity (in part) powers the cars, government subsidies get them built. But in Ontario, Premier Doug Ford has cut the subsidies (up to $14,000 per vehicle) that drive electric car purchases.

In response, Tesla, led by CEO Elon Musk, sued Ontario, claiming a case of “unjustified targeting.” This month, the Ontario Superior Court agreed, basically saying the government singled out Tesla for harm.

But Ford should stick to his guns — electric cars have been an expensive boondoggle for decades, using taxpayer dollars to subsidize wealthy buyers so they can signal environmental virtue, while doing virtually nothing for the environment.

The first commercial-scale electric vehicle appeared late last century in California, thanks in part to a state mandate aimed at pollution control. But only buyers who made more than $100,000 U.S. per year were eligible to lease the vehicles (they were not sold). Buyers also had to install $2,500 charging stations in their garages (meaning they were also wealthy enough to own detached homes — in Los Angeles).

All this for a car with a top speed of 120 km/h and a range of about 80 miles on an overnight charge. Eligible buyers received up to $8,400 worth of rebates and tax credits, partly funded by middle-class taxpayers and renters who couldn’t buy the car.

Times have changed, of course, and technology has improved. The Tesla Model S has a range of more than 300 miles and can do 1 to 100 km/h in 2.7 seconds. But the affordability issue hasn’t changed much, with the Tesla Model S P100D selling for a cool $176,000.

Tesla has promised accelerated deliveries of lower-priced Model 3 vehicles, which start at “only” $56,000. Meanwhile, Ontario taxpayers have been paying to get electric cars on the road.

In 2016, according to the CBC, Ontario paid nearly $800,000 in rebates for electric cars with “six-figure price tags” including $170,000 to subsidize the sale of 20 Tesla Roadster convertibles that retailed for $138,000.

To be fair, subsidies to other high-end electric cars, such as the BMW i8, are equally egregious, though I have not read that BMW plans to sue the government. And there remains little or no environmental benefit if the power generation for electric cars isn’t greenhouse gas emission-free (and in most places, it’s not).

Finally, a study for the Montreal Economic Institute pegged the cost of emission reductions from electric vehicles at an estimated $523 per tonne of averted GHGs — an absurd number, when carbon offsets in North America were selling for about $18 per tonne.

Premier Ford should stand his ground and stop paying for rich people’s expensive electric cars. That Musk sued to preserve his subsidies is prima facie evidence that he knows there’s no market for his cars at full cost.

Kenneth Green is an analyst at the Fraser Institute.

"That Musk sued to preserve his subsidies is prima facie evidence that he knows there’s no market for his cars at full cost."

Bingo!
 

Hoid

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Tesla is the most subsidized company in US history beating out the Union Pacific Transcontinental
how is that possible after the 2008 bailouts?

try to use some common sense.


re "That Musk sued to preserve his subsidies is prima facie evidence that he knows there’s no market for his cars at full cost."

he sued because he knew the government was in the wrong.
 

taxslave

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how is that possible after the 2008 bailouts?
try to use some common sense.
re "That Musk sued to preserve his subsidies is prima facie evidence that he knows there’s no market for his cars at full cost."
he sued because he knew the government was in the wrong.
How is the government wrong to eliminate subsidies to rich people?
 

Ron in Regina

"Voice of the West" Party
Apr 9, 2008
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Tesla is the most subsidized company in US history beating out the Union Pacific Transcontinental


Leaving the Green thing alone, purely as a sports car,
the acceleration of a Tesla is freak'n trippy....


A friend of ours recently sold off his Nissan GT-R and
bought a Tesla, and this from a guy who say's he won't
buy a personal vehicle with less than 550hp.
 
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Hoid

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the way the subsidy was unilaterally ended with no regard to the rights of the people who had already agreed to purchase one was plain wrong.


It took the judge 5 seconds to determine that.

more stupid shit from a stupid shit.
 

petros

The Central Scrutinizer
Nov 21, 2008
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You need to update everything you think you know.

You are infamous for thinking concept products are readily available.
 

Hoid

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Modern batteries do not decline in performance.

ffs even my Dyson vacuum runs full tilt and then simply switches to off when it is depleted - as is the typical case with ni-cad and post ni-cad batteries.
 

petros

The Central Scrutinizer
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Ohhh yes they do. I've posted articles you've never read that leave you standing there waving your dick in the wind.

You really should have read them.
 

Hoid

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all my power tools?

same thing. full performance and then they switch off - zero fade.
 

petros

The Central Scrutinizer
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You think the dick you are waving in the wind is a power tool?

Until capacitor tech is perfected all batteries diminish steadily.
 

taxslave

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Nov 25, 2008
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the way the subsidy was unilaterally ended with no regard to the rights of the people who had already agreed to purchase one was plain wrong.
It took the judge 5 seconds to determine that.
more stupid shit from a stupid shit.
Like you the judge is wrong.Does the judge own a Tesla? since he is in the right income bracket.
 

captain morgan

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Mar 28, 2009
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Leaving the Green thing alone, purely as a sports car,
the acceleration of a Tesla is freak'n trippy....


A friend of ours recently sold off his Nissan GT-R and
bought a Tesla, and this from a guy who say's he won't
buy a personal vehicle with less than 550hp.


They have big acceleration and tons of power, but like Petros mentioned, they have no legs for any real distances
 

Hoid

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Oct 15, 2017
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WASHINGTON, D.C., (April 16, 2015) – On average, Americans drive 29.2 miles per day, making two trips with an average total duration of 46 minutes.