{"id":2106906,"date":"2023-11-24T06:13:02","date_gmt":"2023-11-24T11:13:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-biden-administrations-electric-vehicle-subsidies-are-becoming-another-solyndra\/"},"modified":"2023-11-24T06:18:00","modified_gmt":"2023-11-24T11:18:00","slug":"the-biden-administrations-electric-vehicle-subsidies-are-becoming-another-solyndra","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-biden-administrations-electric-vehicle-subsidies-are-becoming-another-solyndra\/","title":{"rendered":"Biden&#8217;s EV subsidies echo Solyndra d\u00e9j\u00e0 vu"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-biden-administrations-electric-vehicle-subsidies-are-becoming-another-solyndra%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2106906&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"article-content\">\n<blockquote>\n<p>Proterra,\u200c an \u200celectric bus and battery company that President \u200bJoe Biden touted as a success of\u200c his <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-top-energy-regulator-previously-lobbied-for-offshore-wind-farm-approved-by-administration\/\" title=\"Biden's Top Energy Regulator Previously Lobbied for Offshore Wind Farm Approved by Administration\">green energy initiative<\/a>, \u2063 <a href=\"https:\/\/freebeacon.com\/energy\/biden-said-ev-maker-proterra-was-getting-us-in-the-game-it-just-declared-bankruptcy\/\" target=\"_blank\" rel=\"noreferrer noopener\">filed for bankruptcy<\/a> in August. Last week, it\u2064 finally <a href=\"https:\/\/thedriven.io\/2023\/11\/14\/volvo-snaps-up-proterra-battery-business-in-bankruptcy-sale\/\" target=\"_blank\" rel=\"noreferrer noopener\">sold<\/a> its embattled battery business at a rock-bottom \u2062price as \u2062part\u200b of\u200d the \u200dbankruptcy\u200c proceeding. The rise and fall of Proterra demonstrates\u200c once\u200d again that politicians should refrain from betting taxpayers\u2019 money on business \u200bventures to advance\u200c their \u2062political agenda.<\/p>\n<\/blockquote>\n<p>According to the \u200b <a href=\"https:\/\/www.wsj.com\/articles\/proterra-and-the-anatomy-of-an-ev-failure-125f70db\" target=\"_blank\" rel=\"noreferrer noopener\">Wall Street \u200dJournal<\/a>, Proterra has sold only 550 electric transit buses \u2063since \u200dits founding in \u200d2004. Most of \u200dthe sales were underwritten\u2063 by\u200b government agencies with federal grants. Proterra\u2019s electric buses were <a href=\"https:\/\/whyy.org\/articles\/septas-cracking-battery-buses-raise-questions-about-the-future-of-electric-transit\/\" target=\"_blank\" rel=\"noreferrer noopener\">plagued with mechanical defects<\/a> and other <a href=\"https:\/\/commonwealthmagazine.org\/transportation\/t-notes-battery-buses-not-ready-for-primetime-yet\/\" target=\"_blank\" rel=\"noreferrer noopener\">performance issues<\/a>, such as\u200d limited range and long charging times.\u200b Besides\u200d government subsidies, the\u200d company only survived as long as it had due to powerful political connections. Former Michigan governor Jennifer Granholm, Biden\u2019s\u2064 energy secretary,\u200b served on its board.<\/p>\n<div class=\"fdrlst__b89e9-paragraph-2-long d-flex justify-content-center\" style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"fdrlst__b89e9-450420428\">\n<div id=\"div-gpt-ad-1379703300879-0\" class=\"mb-30\"><\/div>\n<\/div>\n<div class=\"fdrlst__b89e9-da13259f18651c3f5a79552a3043f832 fdrlst__b89e9-paragraph-2\" id=\"fdrlst__b89e9-da13259f18651c3f5a79552a3043f832\"><\/div>\n<p>Despite\u200c all the quality issues of its EV buses, Proterra went public in January 2021 and \u2062raised \u2063$650 million,\u200c more than three times its \u2062annual revenue. A month\u2062 after the company\u2019s IPO, Biden tapped Granholm as his energy secretary. Proterra\u2019s\u200b political connection\u200c to the Biden administration paid off in\u200c many ways.<\/p>\n<h2 class=\"wp-block-heading\">Surviving \u200bon Grants and Tax \u200cCredits<\/h2>\n<p>In April \u200d2021, Biden took a virtual tour of a Proterra facility to promote his\u2064 infrastructure plan. The proposal \u200cincluded \u2062 <a href=\"https:\/\/www.wsj.com\/articles\/proterra-and-the-anatomy-of-an-ev-failure-125f70db\" target=\"_blank\" rel=\"noreferrer noopener\">$6.5 billion<\/a> in grants to help <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-biden-administrations-electric-vehicle-subsidies-are-becoming-another-solyndra\/\" title=\"Biden's EV subsidies echo Solyndra d\u00e9j\u00e0 vu\">replace diesel-powered school<\/a> and \u200ctransit buses with electric ones. During the tour, Biden <a href=\"https:\/\/freebeacon.com\/energy\/biden-said-ev-maker-proterra-was-getting-us-in-the-game-it-just-declared-bankruptcy\/\" target=\"_blank\" rel=\"noreferrer noopener\">lauded<\/a> Proterra for \u201cgetting us in \u200bthe game.\u201d He\u2062 predicted that Proterra and\u200b other electric vehicle\u2064 companies would \u200c\u201cend up owning the future.\u201d<\/p>\n<p>Biden\u2019s \u20632022 \u200dInflation Reduction Act further \u2064enriched Proterra\u2019s \u200ccoffer. The law had little\u200c to do\u2064 with reducing inflation, but it gave massive government handouts to\u2062 the green \u200benergy sector. For instance, IRA includes a \u200d$40,000 per vehicle tax credit for purchasing electric commercial vehicles and an \u2062additional \u2063tax credit for EV batteries.<\/p>\n<p>Proterra\u2062 <a href=\"https:\/\/www.wsj.com\/articles\/proterra-and-the-anatomy-of-an-ev-failure-125f70db\" target=\"_blank\" rel=\"noreferrer noopener\">admitted<\/a> in its quarterly report that \u201cthe availability of this new unprecedented \u2064level of government funding for our customers, suppliers, and competitors\u200c to help fund purchases \u2064of commercial\u2062 electric vehicles and battery systems will remain an important factor in our company\u2019s \u200dgrowth prospects.\u201d Proterra\u2019s political \u2062profile rose \u200deven more after Biden appointed Gareth Joyce, CEO of Proterra, to serve on \u2062the President\u2019s Export Council in \u200bFebruary this\u2064 year.<\/p>\n<div class=\"fdrlst__b89e9-b9db70a4ae9e83ad59e465a4c4dc00e7 fdrlst__b89e9-paragraph-6\" id=\"fdrlst__b89e9-b9db70a4ae9e83ad59e465a4c4dc00e7\"><\/div>\n<h2 class=\"wp-block-heading\">Backed\u200c by Biden, \u200cBuried by Biden<\/h2>\n<p>Excessive government spending under Biden has sparked <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-10-13\/core-us-inflation-rises-to-40-year-high-securing-big-fed-hike\" target=\"_blank\" rel=\"noreferrer noopener\">high inflation rates<\/a> that were last\u2062 seen in the 1970s.\u2062 To \u2064bring inflation rates down, the Federal Reserve \u2063has aggressively raised\u200d interest rates. Higher rates increased production and operations costs for many companies. \u200cAs\u2062 legendary\u2063 investor Warren\u2064 Buffett\u200d famously said, \u201cOnly when \u2062the tide goes\u2063 out do \u200dyou learn who\u200d has been swimming naked.\u201d Proterra was one \u200dof those companies that had been caught \u201cswimming \u2063naked\u201d \u2064in\u200b this\u200b new environment.<\/p>\n<p>The company struggled because it had difficulty passing rising costs on to its existing\u2063 customers,\u200b since \u2062most were government agencies \u200cwith little budget\u2062 flexibility. Nor could Proterra outsource its production \u2064overseas or import components \u200dat lower costs. Receiving \u200bgovernment \u200cgrants comes\u2063 with strings attached. One requirement is that companies like Proterra must produce at\u200d least\u200b 70 percent of their EV components in America. Proterra couldn\u2019t afford to cut the prices of \u200dits EVs to drum up sales.<\/p>\n<p>Finally,\u2062 Proterra\u2063 filed for bankruptcy in August. Government subsidies could not offset the financial pressure of rising inflation, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/brent-oil-hovers-over-80-as-inflation-worries-ease\/\" title=\"Brent oil stays above  as inflation concerns ease.\">higher \u2062interest rates<\/a>, and falling sales. Last week, a Swedish automobile manufacturer, Volvo, bought Proterra\u2019s battery business \u200dfor <a href=\"https:\/\/thedriven.io\/2023\/11\/14\/volvo-snaps-up-proterra-battery-business-in-bankruptcy-sale\/\" target=\"_blank\" rel=\"noreferrer noopener\">$210 million<\/a>, a great \u200bdeal\u200c considering Proterra was valued at \u2063$1.6 billion a year ago.<\/p>\n<p>Another party \u200cwho got an excellent deal was \u200bGranholm. She <a href=\"https:\/\/www.cnn.com\/2021\/05\/27\/politics\/jennifer-granholm-proterra-stock\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">sold<\/a> her Proterra shares for $1.6 million last year. They would have \u200cbeen worth nothing if she had held on to her Proterra shares until this August. The biggest loser \u200cof the whole Proterra saga \u2062is American taxpayers.<\/p>\n<div class=\"fdrlst__b89e9-52dc051b93104f640bd9791c80aabd4b fdrlst__b89e9-paragraph-10\" id=\"fdrlst__b89e9-52dc051b93104f640bd9791c80aabd4b\"><\/div>\n<h2 class=\"wp-block-heading\">No Good News for Electric Vehicles<\/h2>\n<p>Proterra was not the only EV company that \u200cwent under. Michigan-based <a href=\"https:\/\/www.wsj.com\/articles\/electric-last-mile-solutions-files-for-chapter-7-bankruptcy-11655098767?mod=article_inline\" target=\"_blank\" rel=\"noreferrer noopener\">Electric\u2064 Last Mile<\/a> declared \u2062bankruptcy in June 2022. Ohio-based <a href=\"https:\/\/www.wsj.com\/articles\/lordstown-motors-bankruptcy-sues-foxconn-5c7a0f46?mod=article_inline\" target=\"_blank\" rel=\"noreferrer noopener\">Lordstown\u2063 Motors<\/a> went \u200bbankrupt\u200d a year later. Ironically, these companies benefited from the Biden \u2064administration\u2019s climate handouts,\u200b but the economic consequences of the same policies eventually \u200bdoomed them.\u200c Even large automobile companies\u2019 EV units are struggling. \u2063Ford estimates\u200b it will lose <a href=\"https:\/\/www.wsj.com\/articles\/ford-electric-vehicles-subsidies-fossil-fuels-5d13079\" target=\"_blank\" rel=\"noreferrer noopener\">$3 billion<\/a> this year \u200con its EV\u2064 business. The company relies \u200don sales\u2064 of gas-powered vehicles \u2063and\u2063 government subsidies to keep the EV business afloat.<\/p>\n<p>More\u200d bad news about EVs is coming. The\u2064 Wall Street Journal reported \u200dthat\u2064 Americans seem to have fallen out of love with EVs because they are more\u2062 expensive than\u200c gas-powered ones. After all, the EVs cost more \u2062to make.<\/p>\n<p>Additionally, the travel range of EVs is limited because few \u2064charging stations exist\u2063 around\u2064 the country. When Granholm took a road trip \u200dwith EVs to highlight \u200cthe Biden administration\u2019s climate initiatives this\u2064 summer, a Georgia family <a href=\"https:\/\/nypost.com\/2023\/09\/26\/house-republicans-probe-energy-secretary-granholms-taxpayer-funded-ev-trip\/\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly<\/a> called the \u2063police\u2064 on her staff \u200cfor using a gas-powered vehicle to\u2062 block access \u200cto\u200d a charging station.<\/p>\n<p>Companies from GM to Tesla <a href=\"https:\/\/www.wsj.com\/business\/autos\/are-americans-falling-out-of-love-with-evs-2c7e6a1a?mod=hp_featst_pos5\" target=\"_blank\" rel=\"noreferrer noopener\">are\u200b considering<\/a> putting additional EV investments\u200b on hold due to \u200cweak \u200dconsumer\u2062 demand. The WSJ Editorial Board \u2064 <a href=\"https:\/\/www.wsj.com\/articles\/proterra-and-the-anatomy-of-an-ev-failure-125f70db\" target=\"_blank\" rel=\"noreferrer noopener\">remarked<\/a>, \u201cOne lesson from Proterra\u2019s \u200dfailure is that government subsidies alone don\u2019t create business success.\u201d<\/p>\n<h2 class=\"wp-block-heading\">A History of \u200bGovernment-Backed Failure<\/h2>\n<p>Biden\u200d should have known better.\u200b He was the vice president under former President \u2063Barack Obama when Solyndra, the solar panel manufacturer that Obama claimed would be \u200da \u201csure winner in\u2062 the solar industry,\u201d filed for bankruptcy less than two years after \u200dthe Department of Energy provided Solyndra with a loan guarantee\u200c for $535 \u2063million.<\/p>\n<p>Although politicians have a \u200cpoor record of picking\u200b business winners, don\u2019t \u2062expect them to learn lessons from \u200dtheir spectacular financial \u2064failures. Ryan Yonk, \u200ba \u200bResearch \u200bFellow at the Independent\u2064 Institute,\u200c <a href=\"https:\/\/www.independent.org\/news\/article.asp?id=8841\">observed<\/a> that \u201csupport \u200bfor renewable\u2064 energy has reached the\u200d status\u200d of a moral imperative, and \u2062more\u200c importantly, a political \u200bimperative that\u2062 elected officials must engage.\u201d<\/p>\n<p>That means American taxpayers\u200b will see more Solyndra and Proterra in the future and continue footing the bill\u200c for \u201cgreen-washing\u201d \u2064Democrats\u2019 failed \u200bclimate policies. The only way\u200b to stop this\u2063 madness is to\u2063 vote these \u2062politicians out of office. If\u200c any\u200c of these politicians made money from taxpayer-funded bets, they should surrender their profits \u2063to make\u2064 taxpayers \u2062whole.<\/p>\n<div class=\"fdrlst__b89e9-70c8ff7958b3adb54d690a8227b895ea fdrlst__b89e9-after-post-content\" id=\"fdrlst__b89e9-70c8ff7958b3adb54d690a8227b895ea\"><\/div>\n<hr class=\"wp-block-separator\">\n<\/div>\n<p> <\/p>\n<h2> What should policymakers\u200d prioritize to \u2064ensure \u200bthe long-term sustainability and success of the EV industry<\/h2>\n<p><span>  Https:\/\/www.cnbc.com\/2022\/08\/11\/us-auto-sales-are-expected-to-fall-again-this-year-due-to-tight-inventory-.html&#8221; target=&#8221;_blank&#8221; rel=&#8221;noreferrer noopener&#8221;>are facing inventory shortages<\/a> \u2064 and are unable\u2063 to meet the growing demand for EVs. This further highlights the challenges of the EV \u200dindustry, despite the \u2062government&#8217;s push for a transition to electric \u200dvehicles.<\/p>\n<p>The story of Proterra serves as a cautionary tale\u2063 for politicians who \u200dprioritize their\u200d political agendas over sound economic decisions. The government&#8217;s intervention and financial support through grants and subsidies can create an artificial sense of success for companies that may not be viable in \u2064the\u2063 long run. Proterra&#8217;s reliance on government funding and its failure to address the fundamental issues in its products ultimately led to its downfall.<\/p>\n<p>Instead\u2063 of propping up specific companies and industries, policymakers should focus on creating a conducive environment for innovation and\u2062 competition. This includes investing in research and development, providing tax incentives for all businesses, and promoting <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/desantis-pushes-for-decoupling-u-s-economy-from-china-using-tariffs-to-force-change\/\" title=\"DeSantis urges separation of US economy from China, employing tariffs for change.\">market-driven solutions<\/a>. By allowing market forces to determine winners\u2064 and losers, \u200btaxpayers&#8217; money can be better utilized,\u2064 and genuine progress\u200b can be achieved.<\/p>\n<p>Furthermore, the government should be cautious in making bold promises and hyping up \u2064companies in the \u2063pursuit of political gain.\u200d The harsh reality is that not all ventures will succeed, and taxpayers should not be left to foot the bill for failed investments.<\/p>\n<p>As the EV industry continues to \u200devolve, it is essential for policymakers \u2064to learn from the failures of Proterra and other\u200b companies in order to make informed decisions\u2064 that prioritize the long-term \u200csustainability and success of the\u200d industry. \u200dOnly by taking a measured and pragmatic approach can we truly achieve a greener and more sustainable future.<\/p>\n<p>In \u200bconclusion, the rise and fall of Proterra highlight the risks \u200bof government \u200dintervention in the business world. Despite receiving substantial government support,\u2063 the company \u200dstruggled with mechanical defects, \u2063performance issues, and\u2062 financial challenges. The\u2062 lesson\u200d from Proterra&#8217;s bankruptcy is clear: politicians should refrain from using taxpayers&#8217; money to advance their political agenda\u2062 and instead focus on \u200dcreating an\u200d environment that promotes innovation, \u200ccompetition, and\u200b market-driven solutions. Only\u200b then can we pave the way\u2063 for a successful and sustainable transition to electric vehicles.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Proterra, an electric bus and battery firm praised by President Biden for its green energy efforts, filed for bankruptcy in August. Recently, it sold its struggling battery business at a heavily discounted price during the bankruptcy process. Proterra&#8217;s journey highlights the need for politicians to exercise caution in promoting ventures as success stories<\/p>\n","protected":false},"author":536,"featured_media":2106907,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[],"class_list":["post-2106906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2106906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/536"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2106906"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2106906\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2106907"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2106906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2106906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2106906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}