India's response to Tesla is a great lesson in leftist economics (or anti-economics), shooting themselves in the foot.
~ Aristotle Sabouni
Created: 2022-04-29 |
Facts
- India is putting high tarrifs on imported cars, and not willing to remove them to prove their market and give companies (like Tesla) an incentive for growing/building infrastructure and a plant in India
- If India removed tariffs, Tesla would start selling Teslas in India, creating jobs and taxes in sales, charging infrastructure, maintenance, marketing, local compliance, and so on. As demand ramped up, the value of building a local plant (and gaining that political influence and decoupling from other currency and supply chains) would become obvious and justified, and India would likely get the car plant sooner (paid for by profits on the cars sold).
- The always Marxist Indian government being obstructionist and protectionist, they do what governments always do: slow down opportunities and progress.
- By demanding a plant upfront, Tesla has to eat the risks and costs. This increase in risks/costs LOWERS the priority and urgency. It requires more evaluation/caution, it requires raising funds. They are already scaling in other countries, so the money goes to those bigger/safer returns.
- By India obstructing, they lost out on years of sales, the retail and support and charging infrastructure jobs that would already being put in place, and all the taxes. These are huge opportunity costs (and tax revenues and jobs) that they are missing out on. All for the sake of political showmanship, and a few manufacturing jobs (which are under half the total jobs/revenue that would be created by Tesla).
Conclusion[edit | edit source]
By making it "all or nothing", India is getting "nothing" in the short term. They aren’t gaining manufacturing jobs by holding our, they are losing on all the other jobs in the interim.
Eventually, Tesla may reach the cross-over point and take the risk. And the dimwitted leftists will think they won something by delaying progress 5 or 10 years… but only by ignoring the hidden costs of where they would be (and all the lost tax income, jobs, etc) if they had just gotten out of the way. And how much further ahead Tesla (and India) would have been, if they hadn't of acted like Marxists/Democrats.
If Democrats/Leftsts could do economics, they would be extinct. But they prey on the weak-minded for political gain, like parasites that eventually kill (or at least stunt) the host.
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🔗 Links
https://insideevs.com/news/582701/india-tesla-market-entry-situation/
