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Joined 1 year ago
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Cake day: June 28th, 2023

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  • Thanks for saying what I was trying to say.

    I think the EV subsidies have essentially just changed into additional profit margin.

    I would probably say that was their purpose from the beginning. Companies aren’t going to do something unless there is profit to be made. The subsidies exist to create that profit.

    Now you could say that manufacturers are charging more and the customers are paying more because they know part of the cost will be reimbursed with the subsidies. But that doesn’t seem sustainable for long, because all it take is one manufacturer to start dropping prices to attract customers. Then everyone would drop prices to match. We weren’t really seeing that previously because everything was supply constrained. But now we seem to be seeing that happen with Tesla at least, they’ve been dropping prices in the USA recently.