The worst aspect of central planning is not just that it misallocates capital, but that it actively destroys it. Centrally planned economies, from the Soviet Union on down, remain littered to this day with stranded assets existing in a largely unrecoverable state. EV subsidies are doing the same thing by wrecking the profitability of companies trying to cash in on such schemes.
The energy unit of Panasonic Holdings missed its operating profit guidance for the past business year due to lower electric vehicle (EV) battery production in Japan and a fall in sales of consumer products, the company said on Thursday.
Operating income for the key segment, which makes batteries for Tesla and other automakers, totaled ¥88.8 billion ($570.18 million) in the year that ended in March, missing its own ¥113 billion forecast, Panasonic said.
The world is a veritable graveyard of those that have faith in and allegiances with the state.
“At the point where the illusion becomes too expensive to maintain they will just take down the scenery, they will pull back the curtains, they will move all the tables and chairs out of the way, and you will see the brick wall at the back of the theatre.”
– Frank Zappa
Frank had a way with words.
I have my tickets to see Dweezil in August.
That’s the point of the increased taxes on capital gains as well, to feed the insatiable maw of government, while punishing those who are successful outside the state mandated industries.
But these people are credentialed, thus much smarter than us.
EV battery production is falling due to the decreased demand from EV manufacturers. This is happening in Japan no less. But those battery plants in Ontario and Quebec that the taxpayers are
paying forsubsidizing are going to buck the trend and be world beaters.