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Comment by bitxbit | Hacker News Reader

Can we be realistic here? I am 100% behind zero emission electric vehicles. However, we are still 10-15 years out from even reaching the necessary infrastructure to support more than 10% market pen. Certain patents will have expired by then. I also despise the fact that Tesla was largely funded by US tax payers and they will likely shift majority of manufacturing abroad in the near future.

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Tax credits may have made the difference between making Tesla survive and not (I don't think any of us can know that, but I'm being generous here), but that's not the same thing as a business being "largely funded by US tax payers". That needs a huge [citation required], not to mention an analysis as to whether these are outsized taxpayer subsidies for Tesla + electric infrastructure and subsidies vs internal combustion automakers + petrol infrastructure and subsidies.

Why do you think they will shift manufacturing abroad in the near future? The factories in China are building for the Chinese market to avoid import duties.

A) When it’s significantly cheaper to produce vehicles outside of the US due to regulatory and labor costs, Tesla will do what’s economically rational. B) US auto manufacturing is subpar. A big reason why I liked Tesla in the beginning was the narrative of US manufacturing revival. Thought they were serious about producing quality vehicles here. Past two years showed that’s not the case.

How was Tesla funded by the tax payer at all?

Electric vehicle tax credits?

Well, EV tax credits are subsidies for a "category" -- electric vehicles -- not specific companies. Every EV customer gets them, and their intention is incentivize the transition to electric transportation, so they're working as they should.

So its not taxpayer funded?

It is, but the original complaint was disingenuous.

That was not a funding going to the company, only to the customers. It made the cars a bit more affordable, that certainly helped. But it didn't fund the company. Also, they have long expired for Tesla, the only companies benefitting from the tax credits are the competing companies.

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