Green European funds may deal a blow to Tesla

[jrrsparkles]

A significant part of the European Recovery Funds will be channelled towards reducing the carbon emissions. This will include solar energy investments, other renewables but also public investments in car maker´s factories to prepare the massive introduction of the electric cars. One of the key selling points of Tesla stocks is the fact that it was born electric and does not have to spend money transitioning as opposed to all major car maker´s. The fact that Europe will publicly subsidize these changes means that Tesla will no longer have that competitive advantage and that one of it´s moats will be gone in 5 years.

Hi Elon: "Say Dooooge"

Tesla stocks seems to be overpriced to be honest because the company isn't actually doing anything, the Elon Musk is just selling his fame and words for money in the name of green, global warming,etc...

But all other companies also started their plants to manufacture them and I hope atleast in the next 5 years we can see full fledged and affordable electric cars all over the world.

[stompix]

I am sorry if you don't know but this is what inventing means in the 20th century. You can Invent anything but the one who makes it worthy for selling is the one who gets the credit. No one needs Inventions, people need products.

You said inventing, so what has Tesla or Apple invented?
Not the touchscreen and not the wheel, and don't go about the batteries as those are made by Panasonic.
So, I'm asking you what technology has Tesla developed that is no match for others that have done in the past.

I think anyone can understand this basic concept of Business, it was obvious that other companies would sooner or later enter into the market, Tesla has its own USP and therefore also has its own customer as well as a fan base who likes the futuristic design, for you, it might be idiotic, for someone your design might be idiotic.

Next time please read twice what I wrote, it's really annoying when somebody quotes you without reading what you wrote.

Bottom line is that they have been able to sell cars at a constant CAGR: https://www.statista.com/statistics/502208/tesla-quarterly-vehicle-deliveries/ despite being a very new company when compared to others some of whom even have experience of 100+ years.

And? Compare that to the jump in sales other brands had, look at the current number of deliveries and think Tesla had 7 years advantage over some brands in the EV department, all that advantage has crumbled in just two years, and it's not like the others are going full power, wait till Renault and VW go on all models full electric. The low-cost sector is nothing Tesla can compete in, in the luxury one it will be game over once the end models from Audi/BMW and Mercedes go full electric, Tesla has no answer the limousines and SUV sector either.

[speedy963]

A significant part of the European Recovery Funds will be channelled towards reducing the carbon emissions. This will include solar energy investments, other renewables but also public investments in car maker´s factories to prepare the massive introduction of the electric cars. One of the key selling points of Tesla stocks is the fact that it was born electric and does not have to spend money transitioning as opposed to all major car maker´s. The fact that Europe will publicly subsidize these changes means that Tesla will no longer have that competitive advantage and that one of it´s moats will be gone in 5 years.

Hi Elon: "Say Dooooge"

Ha! Serves him right! lol. Tesla finally found its match. With this going live, Tesla will be left very far behind and I can only imagine lots of people with personal grudges against Elon Musk and Tesla to support his competition instead. On a side note though, although I kind of frown at the ways Elon manipulates the market, I really think it was a brilliant idea, it's just that the idea alone feeds off of the people that get rekt because of his actions which is morally wrong. But other than that, I think Elon is not dumb or autistic as what most of the people who hate him says because if he were, he never would've reached where he is right now nor will he have such an idea as manipulating the market to his favor.

Anyway, karma has its ways in sticking itself up in the buts of people who deserve it.

[paxmao]

How is this connected to Doge or cryptocurrency though? Just because it's Tesla that's getting the greens means that it will have an effect to the cryptocurrency market? I think that it will somewhat affect but I don't think that it's going to be a big time effect. I am happy that they are subsidizing green energy in the continent because we need this right now or it will be too late.

I am not happy at how Elon used his twitter account to manipulate crypto. Perhaps he should dedicate more time to his own business now. I am just making him realise that... I mean, in the unlikely case he reads this post. I am also aware that some people do not follow that kind of stuff, for which I can only honestly congratulate them, as it is mostly useless manipulation and very close to a punishable action - that is, if the SEC ever cares about what Elon does under the argument of being DUI himself.

[lixer]

A significant part of the European Recovery Funds will be channelled towards reducing the carbon emissions. This will include solar energy investments, other renewables but also public investments in car maker´s factories to prepare the massive introduction of the electric cars. One of the key selling points of Tesla stocks is the fact that it was born electric and does not have to spend money transitioning as opposed to all major car maker´s. The fact that Europe will publicly subsidize these changes means that Tesla will no longer have that competitive advantage and that one of it´s moats will be gone in 5 years.

It’s never a surprise, it’s a normal thing that a business would usually get replaced at times. It happens, and we have seen a lot of businesses that were once at the top, and all of a sudden you see one thing or the other take place and then they get pulled back from the top due to a high competition. But there are still businesses that are able to maintain their position at the top by making good plans and taking the right actions by adapting to changes and what’s trending. So, I think Tesla can still stay ahead of game with proper planning and making sure that they keep coming up with new and better ideas all the times.

[Shenzou]

I mean ever since tesla got a bit of acknowledgment and popularity due to the fact they are producing high efficient electric cars and made some massive profits in the process, other motor companies have started moving towards electric, and in the past two years i don't think i have ever seen so many electric cars being produced and promoted, and i am sure with this new deal we will be seeing even more transitioning towards electric from big car companies, so if tesla wants to survive they need to come up with something new.

[Kakmakr]

I think some people think Elon Musk became a Billionaire because he is stupid...   The guy obviously planned for other countries to go full electrical in the future and he diversified his companies to absorb knocks like that. He is into space exploration (SpaceX) and infrastructure and tunnel construction services (The Boring Company) - (Underground public transportation systems for Vehicles / Utilities / Freight and Pedestrians)

He also developed the "Powerwall" storage battery that runs with his Solar solutions and he is also into low latency, broadband internet systems (Starlink) ....so this is not going to disrupt his empire!

[yhiaali3]

We will see now whether Elon Musk will welcome this important European step towards clean energy!! He sure won't be happy with this news!!! This is proof that the liar’s statement against Bitcoin coloring the environment is just advertising nonsense, now his true stance on clean energy will be revealed if he welcomes this European move, but I am sure he will not.
Big businessmen like Elon Musk never care about the cleanliness of the environment. All they care about is filling their pockets with money. I would never be surprised if Elon Musk secretly fought this project or launched a media campaign to thwart the project (despite his false claim of his love for clean energy) because the project will be a strong competitor to Tesla And Elon Musk may start losing profits because he lost his most important advantage.

[Betwrong]

How is this connected to Doge or cryptocurrency though? ~

Long story short, Elon was saying on multiple occasions that DOGE is more environmentally friendly than Bitcoin. He always misses one important thing, imo: there is more food in places where people produce more, not where they eat less. Same rule can be applied to creating cleaner environment: we can be reducing the carbon emissions not by the means of consuming less energy, but by sponsoring renewable energy sources.

At least that's how I see it.

You are both right and wrong at the same time. You are right that we should be promoting the renewable energy that is for sure, because the other side like oil and such causes devastating results of climate change which is at a level where it is irreversible and by the looks of it we will reach to a level where it will be 100% doom for all humanity if we keep this up for another 10 years (we won't be all gone in 10 years, we will just be on the path of it without any way back) which is why renewable energy is a must and there is no other option.

However dropping the energy levels is not a bad idea neither, not you and me, we are just regular humans, but there are factories that kill the world a ton, even just the highest grossing 70 companies end up spending 10% less energy it would solve half of the whole problem, yes that is right 70 companies spending 10% less would solve half of worlds energy problem, that's it, that is all we need, nothing else needs to change. Which is why there is a "drop the energy consumption" method too.

I'm not going to defend those greedy corporations. Of course they should drop the energy consumption. They owe it to the humanity, especially to the future generations. But we, regular folks, can contribute in this good cause too. We can use EV, as  @arallmuus suggested above, after all we can "bike more and drive less", we can also use air-conditioning only when it's absolutely necessary etc.

Also don't forget that a part of those European Recovery Funds mentioned in the OP, came from some of us on this forum, from people living in the EU.

[tygeade]

If anyone here ever fears that we as normal humans have any problems at all regarding this environment crisis, you can be rest assured that you have nothing to do with it. All of the horrible things that is going on in the world, 70% of the world climate problems is attributed to a total of 100 companies, yes you heard it right just 100 companies.

We can simply move to electric vehicles, and we can change anything we want but in the end those companies will keep destroying the world. We need A LOT MORE trees and we need a lot less oil, we need a lot less pollution, hell China all by itself contributes so much to this problem is that if world governments all get together and say "nobody will be trading with china from now on until they fix pollution, and anyone who keeps trading with china will be banned as well", you can call it a fascist move (which it really is) but it is just to save the world, I believe that is justified over money.

[Betwrong]

If anyone here ever fears that we as normal humans have any problems at all regarding this environment crisis, you can be rest assured that you have nothing to do with it. All of the horrible things that is going on in the world, 70% of the world climate problems is attributed to a total of 100 companies, yes you heard it right just 100 companies.

We can simply move to electric vehicles, and we can change anything we want but in the end those companies will keep destroying the world. We need A LOT MORE trees and we need a lot less oil, we need a lot less pollution, hell China all by itself contributes so much to this problem is that if world governments all get together and say "nobody will be trading with china from now on until they fix pollution, and anyone who keeps trading with china will be banned as well", you can call it a fascist move (which it really is) but it is just to save the world, I believe that is justified over money.

To be fair, it's not only China who benefits from that activity. Almost 30% of global manufacturing of goods is going on in China. All of us, in all other countries, are using those products. Greenhouse gas emissions is our shared problem. We shouldn't blame China alone.

[ven7net]

A significant part of the European Recovery Funds will be channelled towards reducing the carbon emissions. This will include solar energy investments, other renewables but also public investments in car maker´s factories to prepare the massive introduction of the electric cars. One of the key selling points of Tesla stocks is the fact that it was born electric and does not have to spend money transitioning as opposed to all major car maker´s. The fact that Europe will publicly subsidize these changes means that Tesla will no longer have that competitive advantage and that one of it´s moats will be gone in 5 years.

Hi Elon: "Say Dooooge"

Perhaps you are right, and Tesla may suffer some damage from the release of new cheaper electric cars and Europe, but you must understand that in order to compete, produce quality goods, but at a lower price, but the appearance of a low price can only be from the appearance cheap fuel to produce cheap energy. Unfortunately, alternative sources of energy, they are also called green, and this is solar energy, wind energy, at the moment they are expensive and it is unlikely that they can make the goods of Europe more competitive. As far as I know, Europe is betting on the use of hydrogen, but this can provide the opportunity to obtain cheaper energy, and therefore produce, for example, cheaper electric cars and be a serious competitor for Tesla.

[terrorJR]

I've read a news report from the study institute Ember and Agora Energiewende if I'm not mistaken they say that renewable energy such as wind and solar generates 38% percent of electricity sources from the 27 block member countries in 2020, with fossil fuels such as coal and gas contributing 37% . And if this news is true, the thread you say about investing in auto manufacturers to prepare for the introduction of a large-scale electric car is imminent and Tesla will be on equal footing there will be nothing to distinguish Tesla from any other electric car manufacturer.
But with this happening now do you think that the thinking power of Elon and Tesla is one step ahead of the others or just that they are left behind due to lack of finance so they are waiting for investors to invest there so that they can make electric cars now and not before Elon and Tesla made it?
and the options will increase if for example Elon and Tesla's thinking is one step ahead of the others, are they able to anticipate this with something new? because I'm sure they will not stand by if this is true.

[Fesatmas]

if so, it seems we all see that Tesla is far behind, where electricity that continues to create excess power is one factor that is not friendly to the surrounding environment (for Tesla). The more we don't have to continue to emit excessive carbon, we have to use resources that are much more environmentally friendly. As a community, we certainly don't want to feel disturbed by the smoke factory that has shifted the land in green open spaces.

[Rruchi man]

First off, it's a good thing that EU recovery and resilience funds is to boost the economies of nations in the continent to enable them recover from the COVID-19 fallout. I wish other continents would follow suit.

It worthy to note that Tesla already started to lose it's competitive advantage in electric vehicles way before the coronavirus or the recovery fund according to data from this article published in April 2020

(https://www.google.com/amp/s/amp.ft.com/content/7457a168-b595-4c60-8114-abaaf3f6a2b4).

The funds which has boosted the number of competitors entering into the market is a call to action for Tesla or it's not. Consumers would now have a wide range of options.

[jostorres]

A significant part of the European Recovery Funds will be channelled towards reducing the carbon emissions. This will include solar energy investments, other renewables but also public investments in car maker´s factories to prepare the massive introduction of the electric cars. One of the key selling points of Tesla stocks is the fact that it was born electric and does not have to spend money transitioning as opposed to all major car maker´s. The fact that Europe will publicly subsidize these changes means that Tesla will no longer have that competitive advantage and that one of it´s moats will be gone in 5 years.

I do not believe that Tesla made all this money because they were "only" electric car company out there, there are now other car companies that create their electric lines as well, however Tesla is doing a lot better because they are both optimized a lot better, they are faster, they can go longer, they have auto pilot which is still hands on if you do not want to crash but still improvement and they have so many great things basically.

So long story short we are talking about something that is doing quite better than any other electric car, and even if all the other car manufacturers stop making any other car and focus on electric, they are not going to reach tesla level that easily, tesla is already one of the biggest out there and the more others level up, the more tesla levels up as well, not like tesla is standing down and waiting others.

[jaysabi]

A significant part of the European Recovery Funds will be channelled towards reducing the carbon emissions. This will include solar energy investments, other renewables but also public investments in car maker´s factories to prepare the massive introduction of the electric cars. One of the key selling points of Tesla stocks is the fact that it was born electric and does not have to spend money transitioning as opposed to all major car maker´s. The fact that Europe will publicly subsidize these changes means that Tesla will no longer have that competitive advantage and that one of it´s moats will be gone in 5 years.

Subsidies always create distortions in the economy.
How come it is better to give subsidies to a company which is transitioning to electric, but does not give to a company that was born electric? How can this be more efficient in the goal to reduce carbon emissions than to give the same subsidy to both?

So if I am going to create a new car company in Europe, I have an economic incentive to make a company which will transition to electric rather than create an electric company straight away.

Tesla relies heavily on government subsidies, so there's no functional difference between a company that is born electric and one transitioning to electric. They'll both get the subsidies since the point is to incentivize the production of electric cars, not how the company started.  

[Desmong]

The Green European funds on electric cars and solar electricity will still take time for these projects to be achieved and be ready for the consumers consumption or uses. Tesla still have an upper hand with it comes to electric cars with it vast community that are support his product. Although competition will be sure but his product is still of a valuable market to people that loves his product.