California green car incentive program goes dry

Tesla's (TSLA -4.9%) stumbling along with a number of speculative momentum names, and not helping is a report from Green Car Reports of money running out for California's green cars incentive program.

The program had allowed a $2.5K rebate on zero-emission vehicle purchases and $1.5K for hybrids. It's expected new money will be allocated, but this could be several months away from happening.

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Comments (25)
  • Esekla
    , contributor
    Comments (4749) | Send Message
    I think the incentives are a pretty minor factor for Tesla at this point anyway. The biggest what-if here is whether or not there will wind up being a gap in incentive funding. If so, that could produce an anomaly in quarterly sales #s.


    At any rate, as I explain in my most recent TSLA article, if you're buying the stock these days, it's not because of how many cars they sell.
    4 Apr 2014, 12:26 PM Reply Like
  • The Sociology of Finance
    , contributor
    Comments (955) | Send Message
    If that is the case, then CA should stop giving handouts to the affluent and use the money on something more productive.
    4 Apr 2014, 01:25 PM Reply Like
  • cparmerlee
    , contributor
    Comments (13984) | Send Message
    Tesla is the new Hummer.


    Most of the Tesla buyers are in it for the status symbol, not for the environment. This article tells you all you need to know about the average Tesla buyer.


    And I question whether it is "the rich" that are buying it. I bet the profile is much more like the Hummer profile -- i.e. self-absorbed, narcissistic people who aren't actually that well off, but want to call attention to themselves.


    I wonder how many S buyers pay cash? I bet at least 80% had to borrow money or sign a lease.


    And seriously, who puts a web browser in the car when the driver ought to be paying attention to his driving?
    4 Apr 2014, 02:39 PM Reply Like
    , contributor
    Comments (1072) | Send Message
    Hey Mike, Your criticism of Tesla is one sided, Maybe then they should stop giving out incentives for the Prius and other hybrids as well., but I would bet you don't have a problem with Hybrids prospective owners getting you???
    Maybe your just shorting tsla, and that would explain your attitude.
    4 Apr 2014, 07:38 PM Reply Like
    , contributor
    Comments (1072) | Send Message
    You shorter's will find any and every reason to get the stock price down, and I have always wondered if you are like so many shorter's that had admitted to me and other bloggers that they "Missed it" when it was 34.00, and now they want to short the stock until the price gets back down to that level again.
    If you are one of these shorter's......don't hold your breath, Tesla has more plans that you can ever guess about.
    P.S. The stock did go down today, but only because the market tanked, it will be back nest week, but even if it doesn't, it will long before it ever gets close to 34.00, where I got in.
    4 Apr 2014, 08:11 PM Reply Like
  • chriff
    , contributor
    Comments (117) | Send Message
    I would just like to point out that the last 2 Teslas I saw (today) were both for corporate purposes, one a limo service and the other for some sort of home care business. That doesn't make a trend, but it did make me think that these cars are more widely-used than just as a status symbol for the rich/pretend rich. And Hummer went bust because they made useless cars that are expensive to own as well.


    To the other points:
    1. people take out loans/lease cars all the time.


    2. car makers have been putting plenty of distracting gadgets into cars for years.
    4 Apr 2014, 09:57 PM Reply Like
  • Gil Depierro
    , contributor
    Comments (33) | Send Message
    I guess you missed the drop it has been making since its high when the market has been going up up up....
    6 Apr 2014, 11:06 PM Reply Like
  • Gil Depierro
    , contributor
    Comments (33) | Send Message
    Oh, I thought they were a car company? I guess it doesn't matter how many cars they sell? I see.
    6 Apr 2014, 11:06 PM Reply Like
  • Dan Fichana
    , contributor
    Comments (1918) | Send Message
    So 2.5 K on a 100 K car vs 2.5 K on a Leaf.


    I wonder whose EV sales take a hit.


    That is essentially 1 option on the Tesla.
    4 Apr 2014, 12:39 PM Reply Like
  • corbettgirl
    , contributor
    Comments (3) | Send Message
    That's too bad. Every state should offer an incentive. We live in Oregon, and the only incentive when we bought our Tesla was from the federal govt. Oregon offered us nothing.
    4 Apr 2014, 12:44 PM Reply Like
  • 10414841
    , contributor
    Comments (55) | Send Message
    This news has been around for a while. I did not consider it to be significantly negative for Tesla. Around 2% of the price of the car. Are we heading toward another buying opportunity caused by mis-perceptions?
    4 Apr 2014, 12:44 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (1847) | Send Message
    TSLA..Technical update... Short sale at 235 level is last recommendation. Drop buy stop to 226.10 and prepare to cover when stock on this drop to test the lows...will advise...sit tight.


    Market as a's non-confirmation on all three averages speaks very poorly for the next month ....Expect market correction for at least 30 days.... SELL ALL RALLIES.... especially high flyers and Biotechs.
    more later....
    4 Apr 2014, 12:45 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
    Not to worry. California is not ready to give up on green cars just yet.
    4 Apr 2014, 12:45 PM Reply Like
  • Anton Wahlman
    , contributor
    Comments (4241) | Send Message
    The California regulatory expirations are actually a slight positive for Tesla. With the CA green stickers running out, Ford, GM and Toyota will lose as you can't buy their volume sellers (Energi, Volt and Prius) to get into the carpool lane solo. This means the pure EVs win, and that's mostly Tesla and Nissan, as they dominate pure EV sales in CA. This consideration is more important than the $1,500 and $2,500 rebate checks, in my opinion.
    4 Apr 2014, 12:48 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5251) | Send Message
    Agree with you Anton. I don't live in CA but if that is how the system works there, then pure EV is what the state really wants. The traffic problems in CA are legendary, as they are in other major cities. Getting into the carpool lane is the prize.
    4 Apr 2014, 12:59 PM Reply Like
  • MaiTesla
    , contributor
    Comments (54) | Send Message
    As if $2.5K is a crucial factor in deciding to buy a Tesla or not...
    4 Apr 2014, 12:51 PM Reply Like
  • RussellL
    , contributor
    Comments (1277) | Send Message
    "But now the stickers for plug-in hybrids have essentially run out--only 40,000 were authorized--although battery-electric cars are still fine."


    Money is running out for hybrids, not battery EVs.
    4 Apr 2014, 12:53 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5251) | Send Message
    No worry. California will come up with the money.


    The real worrying starts when gasoline goes to $1.25/gallon and all new vehicles get 40mpg city.


    And gasoline will go down to $1.25/gallon when H. E. hockey sticks freezes over.
    4 Apr 2014, 12:56 PM Reply Like
  • 33Nick
    , contributor
    Comments (93) | Send Message
    Tax incentives have never been a big factor for Tesla buyers. The average earnings for the clientele is $250,000. $10,000 is not a big deal, as many surveys and studies have pointed out.
    4 Apr 2014, 01:15 PM Reply Like
  • CommodityInvestor
    , contributor
    Comments (100) | Send Message


    Someone would spend over half their annual expendable income on a car?


    I wonder what they spent on their house?
    4 Apr 2014, 04:40 PM Reply Like
  • Ivan Gault
    , contributor
    Comments (404) | Send Message
    Why do politicians think its a good idea to take money from hard working people and give it to the rich as a reward for buying an expensive status symbol. Given the pollution from generating electricity from coal (#1 source in the US) and making / disposing caustic batteries, why does anyone think it will help the environment? What's next? A $300 cheque for buying a LV purse?
    4 Apr 2014, 01:52 PM Reply Like
  • Stephen Pace
    , contributor
    Comments (812) | Send Message
    @Ivan Gault: Politicians in California are responsible for cleaning up smog issues, particularly in LA, so it is well within their purview to create a regulatory environment that supports that. Any EV qualifies, and a "Leaf" isn't really a status symbol. Natural gas is the largest source of power generation in CA and coal is being reduced US wide. But even on the worst grid, WV, EVs still come out on top when you factor in the entire supply chain of gasoline. Last point, Tesla owners probably more responsible than Leaf owners in helping to change the perception about what EVs can be, so sure, I have no problem with the government setting a goal of 1M vehicles and having Tesla be part of that.
    4 Apr 2014, 02:19 PM Reply Like
  • Tom Incorporated
    , contributor
    Comments (354) | Send Message
    and following Stephen's points, the batteries in a Tesla can be recycled years down the line whenever the battery needs to be replaced. And Ivan, if you want to talk about "taking money from hard working people" I don't particularly like that the price of gasoline at the pump is subsidized either. You knew that right? Without subsidies gas prices would be very very high. Encouraging clean energy is essential until mindsets have been changed around the world.
    4 Apr 2014, 06:33 PM Reply Like
  • 993c4
    , contributor
    Comments (7) | Send Message
    Green stickers are for hybrids and stuff. Teslas are zero-emission vehicles and they use WHITE STICKERS of which there are plenty. Anyone selling shares because of this is a fool.
    4 Apr 2014, 02:29 PM Reply Like
  • joetqm
    , contributor
    Comments (5) | Send Message
    Tesla is a Winner! Lets get behind Mr. Musk. He is the future of America.
    4 Apr 2014, 03:23 PM Reply Like
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