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this post was submitted on 06 Oct 2023
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[Dormant] Electric Vehicles
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Assuming your theory is true, you don't think an extra $7500 in pure profit will have any effect on production? If I was a company I'd try to sell more cars that have massive easy profits...
In reality, there's a whole price elasticity of demand formula that automakers will attempt to model, and they'll adjust everything they make to try and maximize profit, both now and in the future.
I agree that the money is much better spent on public transit, trains, bike infrastructure, etc, but that doesn't mean we get to misrepresent the impact of massive tax credits on the market.