Tesla Motors is a pioneer in manufacturing electric-powered cars. But it is not taking the auto market by storm. Its first model, the Roadster, costing over $100,000 per vehicle, sold only 2,400 actual cars in 31 countries from 2006 until production ended in 2012, despite extensive federal subsidies for electric car purchases.
Its new model, a full-size luxury sedan named the Model S, is doing better, costing about half as much as the Roadster. Tesla sold about 25,000 of these worldwide in 2013. Performance of these vehicles is competitive with ideologically maligned gas-powered cars – but the products are heavily subsidized, by both federal and state tax credits of up to $20,000+ to consumers, and zero emissions credits totaling tens of millions of dollars to the company.
Electric cars follow the practice of most "green" developments, going back to old technology, like windmills, adding fancy, modern gadgets, and ballyhooing it as a futurist breakthrough. Tesla is named for 19th century electricity pioneer Nikola Tesla, who worked for Thomas Edison among others, and helped develop the modern AC current electricity technology.
Tesla Motor Company auto batteries are a contemporary descendant of Nikola Tesla's 19th century battery technology, which fueled an early competition with gas powered vehicles that gas won out decisively. While the jury is still out on whether consumers will buy electric cars en masse, given their limitations and the reality that subsidies are likely to eventually end, people should be free to buy what they want, for whatever reasons.
And legally free to sell what they want as well. Tesla Motors is also pioneering a new sales model for autos, as the only automaker selling directly to the consumer marketplace, rather than through franchised auto dealers.
However, while the automotive marketplace is not currently a free one for Tesla, neither is it for franchised dealers, who are drastically limited in their ability to negotiate freely with manufacturers, due to antitrust prohibitions against them.
The dealer system was originally developed on the thinking that franchised dealers would have stronger incentives and knowledge about local markets to sell cars in those markets. But the dealers soon learned that despite their investments in land and capital, they were at the mercy of the manufacturers, who could replace them, or start up nearby competitors, if they were displeased.
Source : http://townhall.com/columnists/peterferrara/2014/09/29/liberate-the-auto-sales-market-for-all-n1897423
No comments:
Post a Comment