Could tesla have been as strong without government subsidies?

There is no doubt that a wave of electrification is sweeping the world, with policies and subsidies accelerating the consolidation of industries, including the us. But the government's support for the new energy market is unlikely to last indefinitely.

With the gradual decline of policies and subsidies, the global new energy market is experiencing pains and sudden changes. Such transformation is inevitable and the only way for it to mature. All new-energy car companies cannot always rely on "subsidies" to sell cars. To be fair, compared with other car companies, tesla has been taking the lead in electric drive and autonomous driving, so the subsidy is more of a icing on the ice for it. But if there is no government subsidy, can tesla still be as strong as it is now?

On December 17, Reuters revealed that the U.S. government will not change the current tax credit for electric vehicles. "200,000" will remain the subsidy threshold. In other words, subsidies will be phased out when the cumulative sales volume of any new energy vehicle company reaches 200,000.

With tax credits ranging from $2,500 to $7,500 for purchases of all-electric cars in the us, depending on vehicle size and battery capacity, the removal of subsidies is on the table for tesla, which has already sold more than 200,000 vehicles. Not only tesla, gm's new energy sales have also reached the subsidy removal standard.

The impact of the subsidy retreat on America's competitive new-energy market, such as the mighty tesla and general motors, is still hard to gauge. But something is better than nothing. To win subsidies, tesla and gm have been pushing for a revision of the credit, with little success.

Compared with the "post-subsidy" era of China's new energy market, the new energy subsidies in the United States have been cancelled, while the German new energy market in Europe is a different story. German chancellor Angela merkel unveiled a landmark climate plan in September that included subsidies aimed at boosting sales of electric cars, making "rising instead of falling" the dominant theme in Germany's new energy market.

Thanks to generous state subsidies, Germany will overtake Norway as the biggest country in Europe. At present, German consumers can get a subsidy of 6,000 euros from the government and manufacturers for less than 40,000 euros to buy a car, which is very attractive to potential local users. But the increase in financial pressure on the German government is apparent after Reuters said the subsidies would cost nearly 2.6 billion euros by 2025 because of further increases.

In any case, Germany's decision to accelerate the transition to electrification has been made, as has vw's strategic plan to "meet the new masses". In the future, even if the cost is high, I believe that the government and the main plant will not easily go back.

We always talk about the advantages and disadvantages of subsidies for the development of new energy vehicles. There is no denying that the birth and growth of a new thing is great if it can be assisted by appropriate and appropriate help. But if this kind of help is involved too much, make the thing that is growing produces to depend on psychology too much, have a bit more "pull the sprout to encourage" mean.

Therefore, no matter which new energy market we are in, we should look at the "subsidy" issue more objectively. During the subsidy stabilization phase, auto companies need to use their rapid expansion to become the industry leader like tesla. At the stage of subsidy withdrawal, we should actively deal with the capital accumulated before and find the countermeasures after the subsidy is completely cancelled. At the government level, it is more necessary to find a development path suitable for itself, rather than just "to make up the volume".

Don't worry too much about tesla, which is about to lose its "subsidies" to the us new energy market. After all, elon musk has positioned the whole company as a "technology company" and selling cars is not all it is.