With news that another green company is in trouble, the green industry will never fully develop if the federal government does not choose winners and losers. [emphasis, links added]
This is another victim of climate change worship.
Hydrogen semi-truck company Nikola filed Chapter 11 bankruptcy this week after a huge market value collapse.
When the company went public in June 2020, investors flocked to Nikola in a new green deal that Democrats clamored touted by the company, whose market value jumped to $27 billion, bringing it above Ford, even if Nikola hasn't sold yet A Nikola vehicle.
But Green is the future, with the Democrats on the left and the Biden administration insisting that investors jumped on the Green Dream Gravy train, fearing to be left behind.
The problem is that this green dream train suffers from the same restrictions that plague all electric cars. They are too expensive to achieve the promised results.
To be fair, Nikola's founder is Trevor Milton, who was convicted of fraud in 2022.
Nikola's commercials portray the company's new semi-truck. In fact, the truck depicted is empty, without any battery, and portrays it as a load with deceptive efforts.
The ad includes the title: “Nicolah hydrogen electric trucks will take up any semi truck and outperform them in every category: weight, acceleration, stop, safety and functionality – all of which have a range of 500-1,000 miles! ” But this has never been true.
In addition, less than 500 of the 14,000 heavy trucks originally reported. It is also struggling with development issues. In 2023, the company had to recall 209 trucks on battery fires.
At the same time, these trucks cost $351,000, almost twice as much as internal combustion engine (ICE) trucks.
Worse, the sale price is half the cost of truck production. Even if Nicholas buyers received a $40,000 tax credit from Joe Biden's inflation reduction bill, Nicholas is still much more expensive than an ice truck.
Another problem that plagues the company is the lack of established hydrogen refueling networks nationwide.
Truck Market Forecaster ACT Vice President of Research, Ann Rundle, observed, “How do you expect someone to adopt this truck without a practical way to fuel it?”
Finally, the reality of free market forces finally caught up with Nikola. “Like other companies in the electric vehicle industry, we face a variety of market and macroeconomic factors that affect our operational capabilities,” CEO Steve Girsky admitted.
translate: We cannot survive in the free market.
Nikola joins a growing number of failed electric vehicle companies, including Fisker Inc., Lordstown Motors and Last Electric Mile Solutions, who have been in trouble for the past few years.
And if it weren't for the $6 billion bailout of Joe Biden's Department of Energy, Rivian Automotive would be added to the list.
If the electric vehicle industry is to survive and grow, it needs to do so with its merits. It will need to compete in the free market without relying on government handouts and favorable regulations to artificially juice it in existence.
Furthermore, if electric cars are the future, they must go far beyond the current limited capabilities. if They do this and they will win the market.
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