Has T. Rowe Price Glimpsed Tesla's 'Valley Of Death?'

7/5/17

Introduction

It's almost like over the years there's been all these sort of irritating articles like Tesla survives because of government subsidies and tax credits. It drives me crazy…. What matters is whether we have a relative advantage in the market. And, in fact, the incentives give us a relative disadvantage.

Tesla has succeeded in spite of the incentives, not because of them. But these incentives have limited lifetime and limited scale….

So Tesla's competitive advantage improves as the incentives go away.

Thus spake Elon Musk during the May 4 “earnings” call.

I and others have many times debunked Musk’s claim that Tesla (NASDAQ:TSLA) survives despite rather than because of subsidies and tax credits (most recently, here).

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