Tesla Testiness
June 4th, 2013




There’s a small debate going on about the true environmental load of the Tesla Model S, between David Noland of Popular Science and Nathan Weiss of Seeking Alpha. You can wade through the particulars if you like, though it’s probably something like 10,000 words. The short version is that Weiss says that Teslas aren’t really the most environmentally-conscious vehicles and that once you count the true environmental costs, it’s basically the equivalent of a Toyota Highlander. Noland disagrees and claims that when he does the math, the environmental impact of the Tesla Model S is closer to a Toyota Scion.

I’m not in any position to referee the math on this, but I’d make two observations:

1) I suspect that if most Tesla admirers were confronted with the proposition “Buy a Tesla and be almost as good to the environment as you would be if you bought a Toyota Scion,” their response would be something like, Ummm . . . that’s not what I signed up for.

Further, any smart environmentalist who really is out to save the world would immediately understand that the much better proposition would be to buy a Scion and use the saved money to move other vehicle owners out of high-consumption models (Suburbans, Yukons, etc.) and into car-platform cross-overs. Environmentalist (and car enthusiast) Jamie Lendino made this case back in February:

Take a thirsty SUV like a now-discontinued Hummer H2, which averaged 10 mpg on a good day, and replace it with a large crossover SUV that averages 20 mpg. Then take a midsize sedan that averages 25 mpg, and replace it with a Prius that averages 50 mpg. Which is the bigger improvement?

The results may surprise you: It’s the crossover SUV, and by a long shot. The Hummer, averaging 10 mpg and driving 100,000 miles over the course of its life, will burn through 10,000 gallons of gas. The crossover SUV will burn through 5,000 while driving the same number of miles, for a savings of 5,000 gallons. Meanwhile, the midsize sedan would burn through 4,000, while the Prius would burn through just 2,000, for a savings of 2,000 gallons. The person in the first scenario is making a much larger improvement. The Prius is still the best for the environment, but the difference in gas consumed per mile driven is smaller.

As far as environmental concerns go, the Model S is more a badge than a solution.

2) The real problem with Tesla’s Model S, though, is that if you spend $16,000 on an environmentally-conscious Scion, that’s your own dough. If you plunk down $94,000 for the Tesla, you get help from the rest of us.

Noland concludes his defense of the Model S with this:

After all of this, the conclusion seemed clear: I drive a kick-ass, high-performance, five-seat all-electric luxury sport sedan that has the same wells-to-wheels carbon emissions as a tiny Scion minicar with two real seats.

Anybody got a problem with that?

Actually, I do. Because Noland didn’t pay for his “kick-ass, high-performance, five-seat all-electric luxury sport sedan” himself. The federal government kicked in hundreds of millions of taxpayer dollars in assistance to Tesla corporate and then subsidized the actual purchase price of his Model S with $7,500 of our money. Why in the world are we subsidizing luxury sports-car purchases? I don’t want to get all OWS, but it would be one thing for the government to subsidize the purchase of Scions, because those vehicles exist in a price-zone where they’re accessible to a large swath of the population. I wouldn’t particularly like it, and I don’t think it would be helpful, but such a subsidy wouldn’t be morally offensive.

On the other hand, I suspect that most of the people who can afford a $94,000 car with a $7,500 taxpayer subsidy could probably afford it without the taxpayer subsidy, too.

And if the environmental impacts of the Tesla and the Scion are substantially similar, then it’s not clear why the rest of America should be coerced into subsidizing the farfegnugen of the rich and famous.



  1. troy garrett June 4, 2013 at 12:58 pm

    It is a cool technology. Every other country on the planet spends tax payer money on what ever new industry or new science they are trying make sure they dominate. China does it Japan does it, The EU does it. Including the USA that is the top 4 economies in the world.

    That is why we are paying for the farfegnugen of the rich and famous. You can argue (correctly) that the money would be better spent on basic research at universities, or at NASA pushing boundaries of human exploration. However, our government is so screwed up that we cannot spend on research unless we are giving it to some one in the privet sector who will lobby for it.

    So yea if we want to fund research in to the latest cool technology, this is unfortunately the only way it can be done (inefficiently) with our current politicians. But I will hold my nose and accept this science investment as better than nothing. There are better ways to do science investment, but they would require a government that acts like adults.

    Your right that, as far as reducing global warming goes as well, this is not the best investment. $7,000 is enough to buy enough solar cells to take a house off the grid. Global warming is not that hard or expensive to fix, if we actually care to fix it, given that we have 40-50 years or so to deal with it. However, the only way money seams to be spent on global warming is though these privet sector programs. I am annoyed it is not though a university or just using existing technology that can fix the problem. For example the US government can brow money at 1% Solar cells produce a pathetic 7% return with no government subsidies and last about 10-20 years. Even taking those terrible numbers and assuming they are built in Minnesota. The government would actually make money.

    The point is government has so little trust from the public. That if a politician says I will cut this one environmental program and replace it with a better one no one will believe him.

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  3. Alvin Mullins June 5, 2013 at 10:57 am

    Well first you have to prove global warming especially since we’ve been in global cool down for over a decade now. And even if we were warming, you have to prove it is as a result of man-made activity. Given that we now know the major proponents of all this have been fudging the numbers for a very long time while keeping out any discent from scientific journals and I believe the subsidy for a cause that actually turns out to not only not help the problem that much but the problem doesn’t actually exist.

    BTW, those Chinese solar panel companies aren’t doing that great…

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  5. troy garrett June 6, 2013 at 4:55 pm

    That is the way science and research works. You fund 100 projects and only one or two actually make a difference. I do not dispute that, you will have many egg heads wasting there time and our tax dollars for every one that is productive and use full, but no one has figured out how to guarantee effective research, that delivers the exact new science you want at the exact price you want.

    That is beside the point we need to invest in science and the only way we can invest in science in this environment is subsidizing privet companies. The money would be better spent at universities but that will not happen because our politicians suck.

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  7. Joe Sixpack June 7, 2013 at 10:05 am

    Now I’ve been a scientist for decades and that is not how it works. You actually have to prove your idea will work. Write a proposal in academia or business (I’ve spent time in both), I dare you, without any preliminary results. Try getting an angel investor involved in your start-up without a dime of data.

    Better yet, tell an investor that only 1 of his 100 projects will succeed! (The number is more like one out of ten, but you still have show some amount of progress to get funded.)

    The beauty of the free market is that it allows capitalists to fail. Failure is an important lesson. Imagine a world if New Coke, the Yugo, and the Segway were allowed to succeed by government intervention.

    The government does not allow failure. Social security? Medicare? When will the “funding” dry up for these programs? Ten years? Twelve?

    Vannevar Bush was wrong; the best scientific inventions and engineering progress come from private enterprise.

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  9. troy garrett June 7, 2013 at 12:58 pm

    Ok I am trying to see where we agree and disagree. That new ideas and new companies mostly fail. We agree.

    You feel that that the best scientific inventions come from private enterprise. So why on earth are you oppose to the US government supporting it? Do feel science is not legitimate use of government? Supporting science and the arts is in the constitution. I suppose I would agree that the US should not support Tesla over the Volt, New Coke over old Coke etc. But the US does allow these companies to fail eg solyndra etc.

    There is a chance (however small) that a working effective electric car can replace our gas powered cars. That would end the dependence on foreign oil. The resulting loss of demand would cause fall in world oil prices and that would directly or indirectly reduce the wealth of countries where some people are using that wealth to kill us.

    As I stated it is a cool new technology and the government should put some support for this new technology. Ultimately, if the idea will never turn a profit the company will go under. Even with government help eg solyndra.

    Any way thanks for reading my posts. The only way to improve our crazy political system is if Liberals and conservatives talk to each other.

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  11. Nedward June 10, 2013 at 5:02 am

    The Model S is a just a Veblen good; it can’t ever possibly be beneficial to the environment because there won’t be enough of them to matter. And by the way your fun-etic spelling of disused German tapeworm-words is really a disgrace to the hard work of some of our best ad men

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