I agree in most part but... The one thing you under estimate is demand. I did the economics for taxi drivers in my city alone, Montréal. They drive about 300 kilometers/day wich is about $42/day in gas alone. $42 * 300 days = $12600 - cost of electicity of $1200 = savings of $11400/year That is without counting maintenance savings. So, $11400 * 5 year = $57000 that magic number is the price of the model S (40kw they don't need a bigger battery) So, when these guy hear about free cars, what do you think will be the outcome? In Montreal alone, we have 10000 taxis and we have a small city. And what about police cars? I am very bullish on demand, economics are always rigth. My big question was supply and Mr Passin answered that question. Edit: In this article: Hybrids prove very reliable | British Columbia they have taxis riding along for 160k km / year. With that number, model S would pay for itself in just about two years. It's not free, it makes money.