July 11, 2017

Tesla’s Dependence On Subsidies And Credits Spells Trouble


In an interview on Fox Business, “Car Coach” Lauren Fix said Tesla’s dependence on taxpayer subsidies for electric car buyers, which are set to be phased out, spells trouble for the company:

Fix also questioned Tesla’s dependence on the sale of carbon credits to other car makers. Other car companies are expected to roll out electric models and could sell credits based on those vehicles, meaning Tesla’s carbon credits could become less valuable and lead to less revenue for the company.

Another problem Fix brought up was Tesla Model 3 deposits. Tesla has taken millions of dollars in deposits for its Model 3, only adding to the pressure to deliver. All deposits are fully refundable, so if customers aren’t please with the quality of the Tesla 3 or the delivery date and request a deposit refund, it could cost the company hundreds of millions in cash.