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Even the U.S. Government Can't Stop Tesla

Tesla and Elon Musk are an unstoppable force and not even the U.S. Government can stop them.

The Unstoppable Force of Tesla

The U.S. government has done some pretty embarrassing things. One of these was a speech Joe Biden was gave and said GM and Mary Barra were leading the EV revolution. He specifically said, "You led Mary, and it matters" and also said, "She electrified the entire auto industry."

This is an example of not seeing reality as it is. In the U.S., Tesla is selling 70% of EVs and has an enormous lead over every other automaker. Tesla was the first to go electric and stick with it and get it to a mass market. The truth is that other auto companies are reacting and trying to play catch up.

The U.S. government tends to use an approach to say things and try to make them true even if they are not. Elon Musk has put his life savings in Tesla and SpaceX and has survived multiple battles with near bankruptcy.

Tesla is on course to get to 2 million vehicle deliveries this year. The U.S. government can't do anything about Tesla and Elon Musk's success.

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Tesla's Lead and Wright's Law

The IRA EV tax credit in the U.S. couldn't even stop Tesla. The Jeep Wrangler hybrid with 21 miles of electric range was qualifying for the EV tax credit, while the Tesla Model Y with 330 miles of electric range, being fully electric, was not qualifying.

How does something this backward get proposed in the U.S. government? It's pretty simple, actually. It all comes from money given to politicians to make the rules favorable to those who gave money.

Not only that, but it won't matter though because Tesla massively lowered prices and made most of its vehicles to qualify for the EV tax credit. Other EV makers can't lower prices like this because they haven't reached economies of scale and mass production with Wright's Law.

Wright's Law: for every cumulative doubling of production, costs will fall by a constant percentage. Tesla is taking advantage of this law through its volume production with its vehicles. The Model 2 compact car and the Cybertruck will also eventually see this benefit.

Tesla has such a far lead, that tricks like this from the U.S. government won't matter. Tesla is going to succeed with or without the support of politicians.

What do you think about Tesla and their lead in EVs? Will they continue to be an unstoppable force?

For more information, see this video from Farzad Mesbahi:

In Related News: Tesla Model Y to Lead European Car Market

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla, Screenshot

Comments

Mo (not verified)    February 1, 2023 - 8:24AM

This is is so true. Elon Musk and Tesla are being overtly and covertly attacked by our government because he has the courage to speak out. I test drove the Ford Mach E, Lexus plug in, Toyota plug in, Chevy Bolt, and the Nissan Leaf. I purchased the Tesla model y. It is a far superior product and has been flawless since I received it months ago. I am happy to have a CEO at the helm who is not afraid to take on our "special favor" government while at the same time building a far superior product.