Germany To Subsidize Tesla

In a bold move to help the ailing German automobile industry, the German government will be spending billions of euros on subsidies for electric cars most likely manufactured by the American electric vehicle maker Tesla Inc. (Germans don’t do electric cars).

Tesla

Germany raised the incentives to buy electric cars and cut the sales tax on more fuel-efficient internal combustion engines (ICE), but increased taxes on gas guzzling SUVs and sports cars which will hit the profits of the big auto makers.

Wumms“ für Tesla und Nel. Geldregen für Wasserstoff und E-Auto – Daimler und Co stehen im Regen.

Debacle, Disaster, Fiasco…

Just a reminder here again: “There is no free lunch.” Honest.

Lunch

Government intervention at its best (again). Germany’s deliberate attempt to make its energy greener using price guarantees and mandatory quotas for green energy IS NOT WORKING.

Try and remember: The whole idea was to make renewable energy more competitive and, therefore, in the end, cheaper. Well this attempt is so not working right now that German consumers pay higher prices now than ever before and German industry is soon to follow. And this, even though there is actually an oversupply of power. In essence, an energy bubble has been created because Germany’s renewable energy producers get a guaranteed minimum price for what they produce (this now includes farmers and communities and anybody else who can still get into the ponzi scheme).

Imagine you have various consumers going to a grocery store. Some of them want to buy a bottle of beer for 1 USD. Others would like to buy a bottle of champagne for 30 USD. In normal life people would just pay 1 USD for the beer and bubble-lovers would pay 30 USD for champagne. The German energy market is different. People who want the champagne pay 2 USD for it and those who want beer have to pay 2 USD. It’s a good deal for the champagne drinkers, getting subsidized by the beer buyers.

…Perhaps the least fair part of the whole scheme is how these prices disproportionately impact low-income households, who are forced to subsidize green energy for richer families to support politicians’ green energy visions.

European Subsidies Not Enough For Airbus

Now they need American ones, too.

Brussels on Thursday sought WTO approval for trade sanctions against Washington worth $12 billion a year.

“On the one side we have $90 billion (70 billion euros) of illegal financing of Airbus by the EU and on the other side we have $3.0-$4.0 billion for Boeing.”