Category Archives: Personal Automobiles

Can Tesla Survive The Loss Of Subsidies?


Three years ago, The Los Angeles Times posted “Elon Musk’s growing empire is fueled by $4.9 billion in government subsidies”. I have not seen a summary of the current total of Musk’s subsidies but it is certainly more than $4.9 billion now. When The LA Times speaks about an “empire” it included Tesla, Space X and Solar City—all Musk controlled businesses.

This discussion will focus on the Tesla electric vehicle (EV) business.

Subsidies start with the Federal Tax Credit of $7,500 given to each buyer of a Tesla EV.  (Every EV maker gets the same treatment.).  California also provides a $2500 subsidy per car.

The following is from the LA Times posting:

“Tesla has also collected more than $517 million from competing automakers by selling environmental credits.  The regulation was developed in California and has been adopted by nine other states.”

These regulations require that companies selling automobiles must also sell a certain percentage of EVs.  Sales of an EV gives the seller environmental credits.   Manufacturers are penalized for not selling enough EVs and must buy credits to offset their failure. Because Tesla sells only EVs it gets a lot of credits which they sell to the other car makers.

The following 2016 video discusses what the Wall Street Journal thinks subsidies mean to the Tesla’s bottom line: (Please excuse the 15 second commercial.  When video ends click back to this page.)

https://video-api.wsj.com/api-video/player/v3/iframe.html?guid=00E58A9F-9315-47FE-BFED-7C79B2C3A98B&shareDomain=null

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Why Did ExxonMobil Lobby To Stay In The Paris Agreement?


ExxonMobil lobbied President Trump to stay in the Paris Agreement. Can you figure out why that company would wish to do so?

Here are some pickings from the most recent ExxonMobil global energy forecast:

·         Total energy demand by 2040 will be 25% higher than in 2015.

·         Global energy supply in 2040 will be 55% from oil and natural gas. Wind, solar and biofuels will supply only 4% in 2040.

·         Coal use will decline but will still be the third largest supplier of global energy.

·         Global electrical energy demand for transportation will only be 2% of the total global energy demand in 2040.

·         Wind and solar electricity supplies will approach 15% of total electrical energy supply by 2040

·         Although utilization improves over time, intermittency limits worldwide wind and solar capacity utilization to 30% and 20% respectively.

·         By 2040 US and Europe combined CO2 emissions will be about 8 billion tonnes.  The total global emissions in 2040 will be about 36 billion tonnes,

·         Electric cars are a very high-cost option, at about $700/tonne of CO2 avoided.

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Some EV Sales Improvement, But Still Way Below Obama Forecast


ev-for-postingHave you been keeping up with the car buying public’s interest in electric vehicles (EV)? The many models of EVs that are on the market are quite astonishing.  Nearly all the manufacturers have a model or two.  The sales are still well below the Obama Administrations projections.  But 2016 brought some joy to the makers of plug-in EVs.

Probably most of you that are reading this know about the different versions on the market, but for those that have not been following EVs closely, let me give you some guidance.

The Toyota Prius has been the sales leader. Later on, the Chevy Volt and the Nissan Leaf came on the scene but they have not equaled the Prius sales volume.  Those three vehicles represent the three major categories of EVs.

The Hybrid (HEV) is a vehicle that has both batteries and an internal combustion (IC) or diesel, fossil fuel powered motor to propel the vehicle. The batteries are not charged by an external plug-in arrangement but are charged by the onboard motor. The Prius is a HEV

The PHEV has both a IC or diesel motor and batteries, but in this category the batteries are charged by plugging into an external power supply.     The Chevy Volt is a PHEV.

The BEV vehicle has only batteries for motive power and those batteries are charged from an external power supply.  The Nissan Leaf is a representative of this category as are the Tesla and the GM Bolt.

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Want-To-Be Warmers Are Only Getting Part Of The Story


 

This posting uses an article from the Cosmopolitan magazine. Not a place where you would expect to find something about global warming. The title of the piece is “8 Signs You’re Not the Environmentalist You Think You Are” by Yvette d’Entremont. It is not too profound but it has a lot of honest values that most would be environmentalist never are exposed to. I have extracted just pieces of the author’s reasons why they have been misled. If you read all of her article, she makes some more good points

gorecarbonman

The following are the eight signs:

1. You buy only organic.

Organic is definitely not better for you, and it uses older, dirtier farming techniques that are, across the board, not as environmentally friendly. Contrary to rumors, organic farming uses pesticides, in some cases equally toxic pesticides that need to be applied more frequently.

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Sales Of EV’s Are Not Impressive.


cartoonevforseptblogSales of electric vehicles (EV) jumped in the second quarter of this year. This was enough to convince Real Clear Energy to post “Surge in EV Sales Bucks Cheap Gasoline, Broader Auto Industry Trends”. The posting says that while President Obama’s goal of 1 million EV’s on US roads by 2015 was not met, it was only about half that number in 2015, the surge “gives reason for fresh optimism about the future…..” EV Sales in the first half of 2015 were 70,296 versus 2016 first half sales of 99,634—a 42% change. That looks pretty impressive in the abstract.

However,  EV sales need to be evaluated versus all US automobile sales

Detailed Data for sales in August are readily available but June 2016 detailed data are behind a pay wall.  In reality the exact numbers are not significantly going to change the fact that EV sales were about 1..2% of total sales.  YCharts forecast annual sales based upon  auto sales by using the current month’s actual sales.  In June , half of the year, the Y chart number for total sales was 17.09 million automobiles.  This number counts cars and light truck and it includes EV sales in this number.  The 2016 auto sales  for the year based upon August July sales was18.15 million. Because the biggest sales months are in the fall of the year,  the official forecast for 2016 sales is 18.75 million.

Anyway,  if the annual forecast at the end of June was 17.09  roughly the year to date sales for the first six months sales would have been about 8.5 million.

The math:        0.1 million EVsales /8.5 million total sales = 1.2% of the total sales were EVs.

Real Clear Energy really has to be reaching to say that this gives them “fresh optimism.”

A hat tip to David Middleton for this story line based upon his posting in WUWT titled “Green math must be a Common Core product“.  I have modified it because I believe his calculation was erroneous. He arrived at number of 0.6% rather than what I believe is the correct number. Middleton’s conclusion however  is unchanged by my calculation of 1.2%.

cbdakota

 

 

 

 

“California Dreamin’” Or Perhaps Hallucinatin’.


California, always trying to be an environmental leader, has recently enacted SB 350 which will require that, by 2030, electrical utilities must get 50% of their power from renewable resources. The bill also requires greenhouse gases emissions (GHGE) be reduced by 40% by 2030 and 80% by 2050 versus the carsonhighwayimages1990 GHGE baseline. Dropped from the bill were measures to compel a 50% reduction in petroleum use by 2030.

These reductions are more stringent than those that failed to get accepted by the nations of the World at the COP21 meeting in Paris. California against the world. Further, even if these SB350 mandated changes are met, they will be too small to even be measureable. That is the definition of futility.

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Electric Vehicles And Hybrid Sales At Lowest Level Since 2011


These are troubling times for the electric vehicle (EV) and the hybrid (EHV) sales. The first 3 months of 2015 experienced lower sales than in the year 2011 which was the first full year of sales for the Chevy Volt (EVH) and the Nissan Leaf (EV).   Even though the buyer of a new EV or new EVH is still geting a $7500 tax credit, manufacturers are having to cut China Electric Car Bluesprices because the dealer’s inventories are building up. The low price of gasoline and the questions about electric vehicles durability are major reasons for this situation.  But there is another reason that is playing a big part in this problem.   A posting on Detroitnews.com titled “Electric vehicles lose buzz” talks about the issue of leasing:

“Edmunds.com reports that leases comprised nearly seven of every 10 plug-in cars that drove off dealer lots from January through March.

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