Tesla Shares Crash Amid Republican Bid To Kill Off Electric Car Tax Break

Tesla’s share price took a dive Thursday morning as Republicans in Congress revealed they were planning to kill off a US federal tax credit for electric vehicles.

The proposed House tax bill calls for an immediate repeal of the $7,500-per-vehicle credit: something that would have an immediate knock-on impact for Tesla given that it only produces electric cars. Its share price fell more than seven percent to about $296 apiece from Wednesday’s $321.

The draft law emerged as the Elon-Musk-led automaker announced its worst-ever quarter, recording a $671m loss and admitting it had not met its production target for its new Model 3 car, producing just 220 of them against its 1,500 target. —The Register, 2 November 2017

A massive GOP tax-reform bill would end a $7,500 credit for the purchase of electric vehicles and overhaul other energy-related provisions within the tax code.It would repeal an inflation increase for renewable energy production tax credits, a move that would increase taxes for power sources like wind, solar, biomass, geothermal, hydropower and others. —The Hill, 2 November 2017

Behind the political battles over household bills lurks a far greater energy cost crisis. It risks damaging British industry and undermining attempts to boost productivity after Brexit. The issue is under discussion at the Treasury. Officials are clear that for the UK to attract inward investment the country needs to be competitive on energy costs, even while taking action to reduce carbon emissions. —Jillian Ambrose, The Daily Telegraph, 30 October 2017

The GWPF has recently published data and analysis calling into question claims of falling capital cost in the wind industry. Reports of rising costs for solar panels in India suggest that the widely discussed fall in costs in the photovoltaic sector may also prove to be either temporary or largely illusory. –John Constable, GWPF Energy, 1 November 2017

Autumn storm Herwart has caused chaos on the German energy market. Because of the strong wind, electricity prices collapsed into the negative. Consumers, however, won’t benefit from negative prices. For them, electricity is becoming even more expensive. The profiteers of this negative price paradox are Germany’s neighboring countries. “They like to take our surplus electricity off and at the same time shut down their own power plants,” says industry expert Struck. Especially in countries like Switzerland and Austria, this method works splendidly. Operators of so-called pumped storage reservoirs in the high mountains fill their reservoirs with Germany’s free electricity. This practice works perfectly as electricity from foreign power plants is later sold back to Germany at lucrative prices. Die Welt, 31 October 2017

Chancellor Angela Merkel said Friday that she’s still optimistic about the chances of disparate parties allying to form Germany’s next government after an initial round of talks produced little visible progress. Germany’s Sept. 24 election left Merkel trying to form an untried coalition of her conservative Union bloc, the pro-business Free Democrats and the traditionally left-leaning Greens. Over the past 10 days, negotiators struggled to find common ground on issues including immigration and refugees, climate protection and agriculture. While Merkel has kept a low profile, prominent figures from other parties have repeatedly sniped at each other. —Associated Press, 3 November 2017

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Comments (7)

  • Avatar

    Spurwing Plover

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    Twho choices for a car for Al Bore and Leonardo DiCaprio the Flintstone car or the Gilligan’s Island car both a foot powered and made from natural products and one is totaly biodegradible

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    Sonnyhill

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    Wise business men under-promise and over-deliver. When have climate con artists and grant seekers ever done that? All I see is exploitation of irrational green exhuberance.

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    MCPR

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    If a product needs a government subsidy it is, by definition, a loser. If a subsidized product requires the fraud of “global warming” to guilt you into buying it, it is a double loser.
    We should cut our losses and stop the subsidies. If someone chooses to waste their money, let them bear the cost.

    Reply

    • Avatar

      G

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      Well put. Tesla bargained that they would never encounter a government that would insist that they remove the training wheels. In this case the fat kid down the block had ten years to “practice” riding his bike at taxpayer expense. Once again big government wants to pick winners and losers ahead of the public..

      As a stand-alone design, the Tesla is a fine piece of engineering. The trouble is that it does not succeed in a free market, despite the incredible boost it has been given all these years. If Tesla lovers want to differ, then simply cast away the taxpayer assistance and prove it.

      Reply

  • Avatar

    Sonnyhill

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    New marketing plan, it’s the Climate Barbie Ferrari.

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    Amber

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    Just because Rolls Royce makes beautiful quality made cars they
    aren’t so arrogant to think everyone can or can be forced to buy their product . Tesla has upped the game no doubt but the reality is the middle class is steadily being eroded so are going to opt for cheaper transportation . Maybe the Liberals can take their identity politics to the auto sector . If you are a “denier ” you walk . Most real global warmy zealots I talk with at their core would like to see massive declines in population and the truth is a warming planet is more conducive to plant and human growth . Make the world cooler ensures higher fuel poverty deaths and a solution to their issue .

    Reply

    • Avatar

      Sonnyhill

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      Every power outage is followed by a local baby boom nine months later.

      Reply

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