California Says Tesla Is Too Big to Fail

So long as it’s “green” right?

And by the way, Teslas aren’t so “green.”

(From The Wall Street Journal)

The proposed law is suspiciously friendly toward a luxury brand going up against Mercedes and BMW . It aims to bridge the price gap between an electric vehicle and a comparable gasoline-powered car. For a high-end car, the rebate could be $10,000, $20,000 or even $30,000. In a state that accounts for half of all electric-vehicle sales, this vig would be determined by politically appointed air-quality regulators.

Of all the emails that make me chuckle, the best are those from Tesla owners who say taxpayer rebates don’t matter. They’d buy the car anyway. Apparently they think Tesla founder Elon Musk is leaving money on the table in dealings with them. If his customers would buy without the $7,500 federal rebate, he’d be a fool not to raise the price by $7,500 and capture the value of the tax credit for Tesla.

He’s no fool. All state-sponsored benefits, including HOV privileges, end up in Tesla prices. They go straight to Mr. Musk’s bottom line.

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