First of all, Tesla started with a high end car, but are working on cheaper models.
And the 200+ patents that Elon Musk allowed to be used by other companies helps the market grow.
But the main national advantage to the success of Tesla is the eventual decreased dependence on foreign oil. That is a significant plus.
The US can produce more oil than it consumes. The only reason we are not exporting oil is because it is illegal under an ancient 1975 law.
The analogy with, for example, the evolution of price for tech items like wide screen displays and computing capacity getting less expensive with time, has merit. But those items are not part of the transportation market or the energy market. I can't ride my plasma TV to the market to get food, or use my iPhone to heat my house in the winter. Those are entertainment items.
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I was not talking about any market evolution. I was talking about the model that Tesla will be releasing in 2017.
The Model III should be priced around $35k.
Promises and wishes. The market today is rich iconoclasts. Not that there is anything wrong with that. I might buy one just to show it off to my friends......
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So far they have done what they said they would do. And the technology is there.
Without the government subsidy?
In all fairness, I read an interesting review which is, sort of, a counter point to my previous posts;
"A strange phenomenon: When the first hybrids came out, they were popular among my enviro-lefty friends, who gave up their old FJ Land Cruisers and embraced the Prius as an act of consumer self-mortification. The much more radical full-electric cars, such as the Tesla, are showing up not in the garages of my eco-nut friends, but in the garages of my car-nut friends — indeed, practically all of the Tesla owners I know are full-blown right-wingers.
One of the rarely appreciated aspects of the capitalist model of innovation is that the wealthy subsidize the development of products for everybody else: The mobile phone is a case study in that process, as is the electric car, as indeed were ordinary cars. The firm that developed the first automotive air-conditioning and power windows was a high-end marque that despite its landmark innovations is no longer with us: Packard."
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Bureaucracies Dinosaurs Run Amok in Technological Civilization National Review Online