When electric vehicle subsidies were introduced around 2010, they were sold as a short-term fix to allow the undeveloped EV market to get its legs and compete with Internal Combustion Engines (ICE). The subsidies were justified on the basis that EVs, emitting no tail pipe emissions, would reduce global warming, later to be known as climate change.
Fifteen years later, far longer than any normal probation period, the experiment has clearly not worked. According to the Expedia Automotive Trend Report, only 7.9% of new car registrations in 2024 were for EVs. Just 9.3% of the 286 million cars on the road were EVs, paltry numbers indeed considering the strenuous efforts of the federal government to stoke their success.
Purchasers of new EVs are provided with a $7,500 federal subsidy, plus state subsidies where available. Used cars can pull down up to $4,000 in purchasing aid. Commercial vehicles over 14,000 pounds can receive $40,000. Home chargers are eligible for $1,000.
Even though the fuels of ICE cars are heavily taxed, the charging stations for EVs are subsidized too. Battery factories get subsidized. Then there is the whole sorry history of boondoggle giveaways subsidizing EV production and failed loans beginning with the notorious Solyndra debacle.
Canoo lost $900 million and produced 122 cars. Taxpayers got stuck with hundreds of millions of dollars in failed loans from Lordstown Motors, which manufactured 56 vehicles total.
EV drivers don’t have to chip in for road construction and maintenance costs, since they don’t pay gas tax or any fuel-based funding source. On the contrary, theirs is heavily subsidized. Their out-of-pocket cost is equivalent to $1.21 per gallon, but direct and indirect subsidies from government and utilities push the true cost to $17.33 per gallon, according to the Heritage Foundation.
EVs require a lot of juice to operate. Even though the EV market has failed to develop as expected, many major utility companies are already struggling to meet the increased demand. They warn that future EV mandates will require greatly expanded infrastructure for electricity generation and charging stations.
The Texas Public Policy Foundation calculates EV cars would cost $48,688 more without the production and purchase subsidies alone. Maybe all this public expense would be justified if EVs substantially reduced hydrocarbon emissions, but they don’t.
These calculations are tricky because net operating emissions obviously depend on the fuels used to produce the electricity. The disappointing failure of solar and wind to supply abundant, reliable energy and our still-limited access to nuclear energy have resulted in fossil fuels producing most of the electricity used to propel these “emission free” cars.
Moreover, the battery manufacturing and disposal processes are intensely energy consuming. Most studies show little, if any, overall benefit from switching to EVs. Yet the overwhelming evidence that EVs cost a ton and do’’t do much good have so far not deterred the ambitions of government and the enviros to force all or most Americans into them.
The Environmental Protection Agency’s greenhouse gas emission standards still require that 32% of new automobile sales be EVs or hybrid by 2027, a fourfold increase in two years from now! By 2032, 70% of sales must be electric. By 2050, we must be emitting no carbon at all.
Here’s a newsflash. That is’’t going to happen. The world’s biggest polluters (China and India) aren’t on board and even in the West, citizens are clearly not willing to crater their economy for a dubious ideological goal with better solutions available.
Meanwhile, government continues mandating that car companies sell EVs to customers who simply do’’t want them even with the massive incentives. What could go wrong?
Companies that can are fleeing the market. Ford projects that it will lose $5.5 billion on EVs this year, which they are forced to produce to meet the EV fleet mandates. That’s $60,000 per car sold, an amount they seemingly anticipate will eventually be bailed out by government.
Look, it’s America. EVs are actually cool and fun to drive. People who want them and can afford them should have them. But there is no reason that the rest of us, who derive no benefit, should have to pay for them.
Let the bubble burst.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
The Phoenix-based Nikola Corporation filed for bankruptcy this week — Arizona gave millions in incentives and tax credits to the company over the past five years.
Nikola develops electric- and hydrogen-powered vehicles. The company’s bankruptcy comes after years of federal investigations for fraud concerning the company’s innovation and development claims.
In 2019, Nikola received $1.3 million in pre-approved incentives based on projections. That year, projected new jobs were estimated at 400 and the average wage of projected new jobs was estimated at $80,500. The Arizona Commerce Authority (ACA) earned Project of the Year by the Area Development Magazine for bringing on the company.
In 2020, ACA awarded Nikola the highest single pre-approved A-1 incentives grant out of seven awardees for the Arizona Competes Fund Program: $3.5 million. That year, ACA projected Nikola capital investment to be at around $1 billion. Projected new jobs were estimated at over 2,000, with the average wage of projected new jobs at $65,000.
That was the year Nikola had an estimated value of $30 billion.
ACA also gave Nikola a pre-approval for a $7.1 million tax credit. In 2021, ACA then post-approved Nikola for a $6 million tax credit as part of the Qualified Facility Incentive Program. Nikola was one of 19 businesses to receive the award that year.
The company paid $125 million in a settlement to the Securities and Exchange Commission (SEC) that year, though Nikola didn’t claim wrongdoing.
In 2023, ACA pre-approved Nikola for a $3.74 million tax credit as part of the Qualified Facility Incentive Program. Nikola was one of 24 businesses to receive the award that year.
That year, Nikola founder Trevor Milton was convicted of fraud and sentenced to four years in prison for making false and misleading claims to encourage investor demand. Despite resigning from the company in 2020 and the federal investigations into Milton, ACA continued to give millions in financial incentives to Nikola.
The Department of Justice (DOJ) in its announcement of Milton’s sentencing described Nikola’s promise as a mirage:
“Milton made false claims regarding nearly all aspects of Nikola’s business, including: (i) false and misleading statements that the company had early success in creating a ‘fully functioning’ semi-truck prototype known as the ‘Nikola One,’ when MILTON knew the prototype was inoperable; (ii) false and misleading statements that Nikola had engineered and built an electric- and hydrogen-powered pickup truck known as ‘the Badger’ from the ‘ground up’ using Nikola’s parts and technology, when MILTON knew that was not true; (iii) false and misleading statements that Nikola was producing hydrogen and was doing so at a reduced cost, when MILTON knew that in fact no hydrogen was being produced at all by Nikola, at any cost; and (iv) false and misleading claims that reservations made for the future delivery of Nikola’s semi-trucks were binding orders representing billions in revenue, when the vast majority of those orders could be cancelled at any time.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Thanks to DOGE and four wunderkind coders in Treasury’s basement, Americans learned this week that their government sent millions to fund a “DEI musical” in Ireland, a “transgender comic book” in Peru, electric vehicles in Vietnam, and an Anthony Fauci exhibit at the NIH Museum.
Faster than Ludicrous+ mode on a Tesla, the Trump admin’s new code bros are sifting through the financial ledger of America’s spending. Just 20 days in office and the new administration has saved the American taxpayer billions of dollars — exactly what Trump promised on the campaign trail. And as the president’s third week unfolded, news worsened for Democrats and America’s permanent bureaucratic state.
It seems the permanent bureaucracy borrowed the U.S.S.R.’s media playbook, funneling millions to left-wing news organizations such as The New York Times, Politico and Reuters. Evidently it wasn’t enough that a Republican in the newsrooms of our state-run media outlets, PBS and NPR, is rarer than a cogent sentence from Kamala.
Democrats, meanwhile, have decided that this Deathstar boondoggle of government spending at its worst is the hill they want to die on. Conservatives watched with glee as Rep. Maxine Waters, Sen. Chuck Schumer, et al, led the Charge of the Lightweight Brigade to USAID’s former headquarters. Cue dopey chant: “wE Will wiN!” (2025 update—no, you didn’t).
Before all the spending porn (as the great Louisiana wag, Senator John Kennedy dubbed it), Democrats’ opinion polls were in the gutter, with a disapproval rating of 57%.
Do the Dems think rushing to the barricades to defend out-of-control spending will earn them the respect and admiration of the American public? Expect their approval ratings to continue to sink like the Hindentanic.
USAID is just the beginning.
Wait until DOGE bites into the Department of Defense, which has never passed an audit.
In 2019 while on reserve duty at the Pentagon, I was thrown into yet another meeting chockablock with PowerPoint slides, so beloved by our military. This particular meeting was to cover the results of a service-wide audit. To summarize about 187 slides and 2 hours: we failed.
All the top brass in the room somberly listened to the auditors describe $5 billion worth of missing aircraft engines, leases for buildings and land that did not exist, accounting systems closer in age to the abacus than a modern spreadsheet, and miles of missing debits and credits.
As the most junior officer in the room, I kept quiet but closely studied the faces of my superiors. They too, kept quiet, only murmuring “next slide” as disaster after financial disaster was flashed across the screens.
My inner fiscal hawk prayed that the service chief would flip the table over and channel Col. Nathan “YOU CAN’T HANDLE THE TRUTH” Jessep. But he remained impassive and the meeting dissolved with a whimper and no plans for reform.
That night leaving D.C., I happened to bump into a very senior republican senator at Reagan National Airport and thought it my civic duty to share the (unclassified) events of earlier in the day. I told the venerable appropriator that the audit had revealed billions in waste, fraud, and abuse, and even suggested he should make a request to see the failed audit for himself.
(In the hindsight afforded by three years working in the U.S. Senate, I now know how utterly naive this moment was).
He paused a moment, then said, “Well, you know how these things are. That’s Washington for you.”
I felt sick at the time, which is likely the same feeling many Americans are having this week as they see the grift laid bare in our nation’s capital.
But the good news is that Trump and his DOGE team have restored the hope that government might be right-sized and returned to solid financial footing.
On Friday, when he was asked about the job Elon Musk is doing, the President remarked, “I think we’re going to be very close to balancing budgets for the first time for many years.”
What a tantalizing prospect — a government that spends within its means may truly bring about the golden age of America promised in the president’s inaugural address.
Morgan Murphy is a contributor to The Daily Caller News Foundation, military thought leader, former press secretary to the Secretary of Defense, and national security advisor in the U.S. Senate.
President Trump’s historic victory in the November election gave him a clear mandate from the American people. And so far, he hasn’t wasted any time getting to work. In his first month back in office, Trump signed 45 Executive Orders (EO) in an effort to put America first and undo much of the damage created by the Biden administration. And that’s especially true with his executive actions to unleash American energy.
Ending the Net Zero Climate Cult Fantasy
For four years under President Biden, the American people were forced to endure an administration that was hellbent on pursuing a net zero agenda. Across the country, they pushed these radical and costly climate action plans to fundamentally transform and restrict the energy options available to consumers. Along with this came calls from the Left to ban gas stoves, gas cars, gas-powered lawn equipment, and hundreds of other draconian ideas to limit the freedom of the American people.
If the high cost of these plans wasn’t enough, they have also proven to be unreliable. States and countries that have committed to energy sources like solar and wind as part of this net zero fantasy have experienced rolling blackouts, continually demand that their customers use less, and eventually have to make haste to open reliable sources of generation they had closed down. Isn’t that right, California?
But Trump’s Executive Order 14154 unleashes fossil fuel production and use in America while unwinding much of the damage caused by the Biden administration…
Just a few years ago, ESG was all the rage in the banking and investing community as globalist governments in the western world focused on a failing attempt to subsidize an energy transition into reality. The strategy was to try to strangle fossil fuel industries by denying them funding for major projects, with major ESG-focused institutional investors like BlackRock and State Street, and big banks like J.P. Morgan and Goldman Sachs leveraging their control of trillions of dollars in capital to lead the cause.
But a funny thing happened on the way to a green Nirvana: It turned out that the chosen rent-seeking industries — wind, solar and electric vehicles — are not the nifty plug-and-play solutions they had been cracked up to be.
Even worse, the advancement of new technologies and increased mining of cryptocurrencies created enormous new demand for electricity, resulting in heavy new demand for finding new sources of fossil fuels to keep the grid running and people moving around in reliable cars.
In other words, reality butted into the green narrative, collapsing the foundations of the ESG movement. The laws of physics, thermodynamics and unanticipated consequences remain laws, not mere suggestions.
Making matters worse for the ESG giants, Texas and other states passed laws disallowing any of these firms who use ESG principles to discriminate against their important oil, gas and coal industries from investing in massive state-governed funds. BlackRock and others were hit with sanctions by Texas in 2023. More recently, Texas and 10 other states sued Blackrock and other big investment houses for allegedly violating anti-trust laws.
As the foundations of the ESG movement collapse, so are some of the institutions that sprang up around it. The United Nations created one such institution, the “Net Zero Asset Managers Initiative,” whose participants maintain pledges to reach net-zero emissions by 2050 and adhere to detailed plans to reach that goal.
The problem with that is there is now a growing consensus that a) the forced march to a green energy transition isn’t working and worse, that it can’t work, and b) the chances of achieving the goal of net-zero by 2050 are basically net zero. There is also a rising consensus among energy companies of a pressing need to prioritize matters of energy security over nebulous emissions reduction goals that most often constitute poor deployments of capital. Even as the Biden administration has ramped up regulations and subsidies to try to force its transition, big players like ExxonMobil, Chevron, BP, and Shell have all redirected larger percentages of their capital budgets away from investments in carbon reduction projects back into their core oil-and-gas businesses.
The result of this confluence of factors and events has been a recent rush by big U.S. banks and investment houses away from this UN-run alliance. In just the last two weeks, the parade away from net zero was led by major banks like Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and, most recently, JP Morgan. On Thursday, the New York Post reported that both BlackRock and State Street, a pair of investment firms who control trillions of investor dollars (BlackRock alone controls more than $10 trillion) are on the brink of joining the flood away from this increasingly toxic philosophy.
In June, 2023, BlackRock CEO Larry Fink made big news when told an audience at the Aspen Ideas Festival in Aspen, Colorado that he is “ashamed of being part of this [ESG] conversation.” He almost immediately backed away from that comment, restating his dedication to what he called “conscientious capitalism.” The takeaway for most observers was that Fink might stop using the term ESG in his internal and external communications but would keep right on engaging in his discriminatory practices while using a different narrative to talk about it.
But this week’s news about BlackRock and the other big firms feels different. Much has taken place in the energy space over the last 18 months, none of it positive for the energy transition or the net-zero fantasy. Perhaps all these big banks and investment funds are awakening to the reality that it will take far more than devising a new way of talking about the same old nonsense concepts to repair the damage that has already been done to the world’s energy system.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
