Thesis: an administration comes into power that is not friendly to Tesla. They are heavily supported by unions and lots to lose if Tesla is truly successful and the big 3 go bankrupt on their watch. Think about the optics. The administration does however see the writing on the wall when it comes to the EV movement. It’s perhaps inevitable at this point. So they conjure a brilliant strategy to give hope to their union bosses and constituents. Let’s dangle a federal discount for EVs. Every car manufacturer other than Tesla could care less when that discount goes into effect. They have other streams of revenue and the longer the possibility of a discount is out there the better for them. Gives time to catch up. For Tesla that’s very bad. All sort of folks will now not hit the order button waiting for $7K. Personally and anecdotally my cousin was ready to buy a Y in December of 2020. Rumors of Biden winning and bringing back the federal tax discount have held him from pushing the button to this day.
4-D chess move indeed. The administration can maintain the illusion of working on enabling this discount for years. This will severely impact Tesla sales in the US. Their foreign operations will allow them to eek a living but will take the air out of their bubble not to mention cash reserves if it goes on long enough.
If we allow for this premise how is this not considered market manipulation? If Buffet has to be secretive about buying Chevron so as to not move the market how can the US government not be subject to a similar standard? We know US govt has secretive sections. Should this kind of action be done in silence and announced only when it goes into effect? How can we combat this move?
4-D chess move indeed. The administration can maintain the illusion of working on enabling this discount for years. This will severely impact Tesla sales in the US. Their foreign operations will allow them to eek a living but will take the air out of their bubble not to mention cash reserves if it goes on long enough.
If we allow for this premise how is this not considered market manipulation? If Buffet has to be secretive about buying Chevron so as to not move the market how can the US government not be subject to a similar standard? We know US govt has secretive sections. Should this kind of action be done in silence and announced only when it goes into effect? How can we combat this move?
