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Dec 13, 2014, 02:48 AM
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The future of the gigafactory & unlimited lipo's

So oil prices started plummeting at the same time quantitative easing ended. The media promoted it as a victory for Obama's energy policies & supply catching up to demand, but if that was true, prices would have fallen back in 2008.

More likely, the decline in housing prices that was averted in 2008 by printing money has resumed in a new form. Too few people are making too little money to sustain $100 oil. The government guarantees all mortgages against all losses, so $100 million bungalows can thrive even in a world with no jobs, but it doesn't guarantee oil. Even in Calif*, gas fell below $3 for the 1st time in 10 years despite a doubling in taxes.

So assuming it is the lack of money & not the reincarnation of Einstein you elected, & the government isn't going to subsidize oil prices with another $5 trillion, lots of people in N Dakota, Canadia, & Alaska, are going to lose their jobs. What's going to happen to Tesla when the allure of avoiding those scorching $3 gallons of gas is gone or are people buying Teslas because of something besides the fact that they're electric?

The promise of gas disappearing caused huge investments in lithium production for electric cars & a plummeting in lipo prices. To be clear, Teslas never used lipos. They used traditional, higher capacity ion batteries in metal cans. Still, they did create a lot of speculation in lithium production that benefited everyone. The world reinvented itself for a future without gas, heavily dependent on electricity storage.

The millions of people extracting oil & producing electric cars in a world with plummeting gas prices now look a lot like the millions of people working at webvan in a world with plummeting demand for mail order groceries, 15 years ago, but there wasn't socialism back then. Socialism is a new beast. The government could subsidize Tesla & the gigafactory with $4 or $5 billion. Google could easily buy them out for $50 billion. Technically, $100,000 electric cars can thrive in a world with no jobs & no demand for electric cars.
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