This annoyed me enough to write an email to Todd Stone and Terry Lake, as follows. I'm sure there's more to the economics than I've mentioned, but the basic premise is sound (I think!):
Todd/Terry,
I've just read some disturbing news about the extension to the CEV for BC rebate program. Specifically, that there is going to be a cap at $77,000. The quote from CBC is "Clark is also set to announce an electric vehicle-price cap of $77,000 in an effort to encourage more British Columbians to buy electric vehicles".
I am shocked to see this! How this is going to encourage more of us to buy EV's is completely beyond me. At present, there is really only one manufacturer offering an EV that is practical for the distances we travel in BC. That company is obviously Tesla. I know that Terry drives a Volt, but it's not really the sort of EV we must transition to since it still relies upon an internal combustion engine (ICE) to bridge the distance gaps.
I bought a Tesla. I stretched to buy a Tesla. I stretched a very looong way to buy a Tesla. Had the Tesla not existed, I would not have purchased an EV, because the current offerings simply don't provide the range I required to replace my ICE. The rebate helped me gulp back my hesitation and take the plunge.
In my case, the rebate meant I bought an EV. Had it not been there, I wouldn't have. I would not have settled for something less. Therefore, the rebate as it apparently will be adjusted, would NOT have contributed to either an EV purchase or one less ICE on the road.
I note also that the 'luxury tax' at 10% on an Tesla purchase is guaranteed to kick in. Let's say the Tesla is $100,000. That means $10,000 in PST is collected. Subtract the $5,000 rebate and it's still $5,000 in the government's pocket. Compare that to a Leaf at, say, $35,000. No luxury tax, so 7% PST would equate to $2,450. Let's call it an even $2,500. Deduct the $5,000 rebate and the government is out of pocket by $2,500.
So if the rebate prompts a buyer to purchase a Tesla, the government makes money. If the buyer purchases a Leaf, the government loses money. How do these economics work to the taxpayer's advantage? A single Tesla purchase would offset the rebate cost of TWO Leaf purchases! Is it simply a question of optics (Telsa is for the rich), and the assumption that the average taxpayer can't understand this basic math? Including Teslas would actually help to fund the program!
You guys really need to revisit this, if the CBC has it right. As a taxpayer, it annoys me. As an EVangilist, it pisses me off more than you can know.
Please correct me where I've gone wrong with my understanding.