What’s good for Elon Musk and Tesla is not good for America
Tesla already produces over half its global output in China
OPINION:
As President Biden’s increasingly virulent stagflation chokes off auto buyers and the American economy, Elon Musk’s predatory pricing strategy for Tesla is likely to snuff out General Motors and Ford.
Mr. Musk’s gambit will likely also cede long-term control of the global auto market not to Tesla but rather to China.
In the financial press, Mr. Musk’s price slashing is portrayed simply as the act of a desperate man taking desperate measures as inflation, higher interest rates, and recession savage the U.S. auto market. But Mr. Musk is one of the smartest humans on the planet, and it is critical to understand several key economic concepts underlying his price-cutting strategy.
The first is “economies of scale.” Industries like auto manufacturing that require massive capital investments can best lower unit costs of production by expanding factory scale. Whichever company achieves the greatest economies of scale will thereby have the firepower to drive out other competitors through lower, and yes, predatory prices.
With such “predatory pricing,” the largest companies can drive out the smaller ones by driving down prices to their cost of production, thereby earning zero profits but not operating at a loss. In contrast, smaller companies can’t match that predatory price without losing money and are thereby driven out of the market.
This is why historically, we never saw a proliferation of hundreds of auto manufacturers but rather simply the Big Three of General Motors, Ford and Chrysler and foreign giants like Toyota, Hyundai and BMW. And extinction is precisely the fate that awaits the U.S. automakers Ford and GM if Tesla succeeds in dominating the electric vehicle market.
You might think that lower Tesla prices at a time when inflation is raging would be good for America. Enter stage Marxist left, China.
Continue reading at the following weblink:
https://www.washingtontimes.com/news/2023/apr/25/whats-good-for-elo...
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Tucker Carlson is the new Alex Jones
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Maine as Third World Country:
CMP Transmission Rate Skyrockets 19.6% Due to Wind Power
Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.
Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT
******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********
(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/
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Hannah Pingree on the Maine expedited wind law
Hannah Pingree - Director of Maine's Office of Innovation and the Future
"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."
https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/
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