Finance – Market Collapse for EV Companies


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Money Matters

March 11, 2024 by Scott Crosby

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Finance – Market Collapse for EV Companies

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S765-1.jpgThe darlings of politicians like Joe Biden have shown their true viability, and even politicians cannot stop them from driving off a cliff.  

Not even politicians wearing rose-colored glasses can deny that any longer.  EVs are not the solution to any problem – real or imagined.  

The EV debacle will be remembered in history books for decades to come.

The blame game

Those same politicians, who assumed that they had the power to legislate innovation, will of course have to find someone to blame for the failure of EVs.  

Clearly, the politicians will never admit that they themselves, in setting up the laws and huge government subsidies to strong-arm businesses into cooperating with their dictated dream world, are to blame.

Who will their political wrath implicate?  Who will be the focus of their endless accusations, investigative hearings, and unending testimony by businessmen before panels, whose involvement those same politicians encouraged and welcomed to build an EV industry out of political pipe-dreams?  

In an open capitalistic free market place, businesses compete for sales.  Winners ae profitable, and survive.  Those who fail to make a profit leave the competitive arena.  

But government subsidies warp that environment, creating false standards for success.  Companies who can get the biggest share of government subsidies and can find the biggest loopholes in the new laws become the biggest moneymakers – even on products like EVs that ultimately prove to be bottomless money pits – utter failures.  

The result is a loss of taxpayer money paid out as subsidies that is never recovered.  That money disappears.  The economy – i.e., the well-being of individual workers and their families – suffers.

Look for politicians – in Congress or in the President’s many bureaucratic agencies, at the President’s behest – to focus their investigations on the most well-known, headline-grabbing businessmen.  Top among those businessmen is flamboyant, ebullient, and highly successful Elon Musk, CEO of the most prominent EV manufacturer, Tesla.

Tesla has qualified for a sizeable share of government subsidies, but like General Motors, Honda, Ford, Toyota, and others, has hit the same ultimate roadblocks of the laws of physics:  electric vehicles have limited range, are overly-heavy, require expensive and harmful rare metals, have a limited life-span, and will require expensive replacement.

Even politicians can’t fight Mother Nature.

The nature of batteries is simple:  as a portable power supply, batteries are a far-distant also-ran compared to internal combustion engines – whether they burn gasoline, diesel, or, eventually, hydrogen.

Even politicians cannot change the laws of physics.  Even politicians must bow to Mother Nature.  

When politicians act like they can dictate a change, there can only be one ultimate consequence:  the cost is detrimental to the economy – which is to say, that cost hurts the financial well-being of those who are unfortunately forced to pay the bills:  taxpayers and their families.

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