Wednesday, 10 February 2016

Lithium Race - Tesla: Model 3 Will Cost As Low As $22k After Incentives, Taking Orders In March.


InsideEVs: Close to the Model 3 reveal, Tesla officially re-confirms $35k pricing.


  InsideEVs reports, that rumours that Tesla Model 3 will not be unveiled in Geneva at the very beginning of March, as it was reported by Elon Musk before, are true. Now we will learn more about Tesla Model 3 "only" at the end of March. But we have more important news today: it is great to see that the pricing before the incentives is confirmed at $35k. Let's the first price wars for electric cars begin between GM Bolt and Tesla Model 3. This aggressive pricing means that in U.S. Tesla Model 3 will be sold below $30k and in some U.S. states even as low as $22k! Colorado will be that magic place to go and buy Tesla where you will get $6k of state tax credit on top of $7.5k federal tax credit. We are getting very fast in this lithium race to my magic 20/200 formula for the mass market for EVs. 


"We are entering into the new phase of The Next Industrial rEVolution, when electric cars will grow exponentially from the very low base of 0.8% of total sales in the world. Just in China alone 26 companies are now making 51 models of electric cars. China has become the largest lithium market in the world, moves to claim the largest lithium battery market next and will become the largest electric cars marker in the world this year. Lithium is the magic metal at the very heart of this Energy rEVolution."








My Outrages Lithium Price Prediction Of $15k per MT Of LCE And Joe Lowry On China Lithium Market Upheaval.



Copyright Global Lithium LLC, used with permission.


  Joe Lowry makes very interesting observations about the dynamic in our Lithium Universe. China is the largest Lithium Market in the world now. Security of Lithium Supply becomes the most important element of your business plan, when market is growing exponentially. It is all happening even before Tesla Gigafactory is coming online with other Lithium Megafactories to follow. My prediction about $15k MT LCE prices in China now suddenly does not look totally outrages any more!



"Asia is taking the very important lead in this space as well. China is not only leapfrogging directly into the Lithium Energy Space with Electric Cars and Solar, but building the advanced materials base for this new Energy rEVolution. Panasonic, Nissan, Toyota, NEC, Sony, Samsung, Huyndai, LG Chem and others are staking its own place in electric cars now. China is the largest Lithium Market in the world already, moving to claim the largest Lithium Battery Producer title and Electric Cars in China will become the largest World's EV market early in the next year.
  Listen to that podcast, read the article about LG Chem and do your own research. Numerous companies are building Lithium Batteries facilities now in China: LG Chem, BYD, Boston Power (Ganfeng Lithium has 10% stake), Foxconn, Samsung, A123 - which will exceed even Tesla Gigafactory production capacity! 17 start ups only this year are trying to capitalise in lithium batteries market on the "War on Pollution" announced by China and state-level plan to build new strategic industry - Electric Cars. Read more."

Lithium Race: Will Price War Between GM Bolt And Tesla Model 3 Bring Us Mass Market For EVs?



  "Finally, GM Bolt is out as production model at CES 2016! What is even better: GM promises to deliver now 200 miles with around $30k price tag! We are getting to my 20/200 EV mass market formula now: when $20k buys you BMW 2 type EV with 200 miles range. The first Price War in the Electric Space is officially on now! GM Bolt is priced "around" $30k and is challenging Tesla Model 3 to be unveiled at Geneva Auto show in March this year. Elon Musk will easily match performance of GM Bolt, in my personal opinion. Tesla can deserve even price premium to GM Bolt: next move from Elon Musk will be very interesting - will he go for the bold statement and the market share by matching GM Bolt at $30k price tag instead of $35k?



  Later, Gigafactory will allow Elon Musk to be more aggressive with pricing with the increased volume, but what will be Tesla's move now? GM Bolt is supplied by LG Chem with lithium batteries: it will be very interesting to know the price and whether LG Chem is going for the market share as well now by selling lithium batteries below cost. I have never heard that LG Chem is working on the next stage of Lithium Solid State Batteries, can somebody help me here, please?
 Lithium Solid State Batteries can be the largest secret around Gigafactory and Tesla Model 3 future. If Elon Musk is really working on it now and will be able to commercialise it - we can talk about $100/kWh lithium battery cost, when 50 kWh lithium battery for Tesla Model 3 will be costing only $5k and will provide at least 200 miles range! Read more."



Lithium Race To Mass Market For Electric Cars: What Do We Know About Tesla’s Secret Model 3?



"The Salt Lake Tribune gives us today a very good summary of what we already know about Tesla Model 3 and I will provide a few links to show why this Lithium Race to mass market for electric cars is picking up speed and we have reached the point of no return. Lithium is the magic metal at the very heart of this Energy rEVolution and cheap lithium batteries change everything. Read more."


"The price is right. The base model will cost $35,000, reportedly before government incentives, which in the United States range from $7,500 to more than $13,000, depending on the state."


InsideEVs:


The question of “Will the Tesla Model 3 really keep the $35,000 price-point that  CEO Elon Musk promised so many years ago?”has definitively been answered.
Yes.
Tesla Says The Model 3 Is On Track For 2017 Arrival
Tesla Says The Model 3 Is On Track For 2017 Arrival (concept art via easycharge.me)
Seeking final clarification Bloomberg (who always seems to have Tesla’s ear for some reason) reached out to Tesla for confirmation ahead of the first reveal of the Model 3 next month.
“We can confirm it’s $35,000 before incentives,” Khobi Brooklyn, a Tesla spokeswoman told Bloomberg. “We haven’t changed our minds.” 
This means of course for the unwashed masses in the United States, the Model 3 will be available from $27,500, while other state residents will do even better – such as an effective starting price of $25,000 in California.  Far below the average newcar transaction price in the US today.
The new question quite likely will now shift to  “How long will Tesla keep the Model 3 priced from $35,000?” as the company has a history of deleting and/or upgrading the base model (at a higher price).  But we will leave that for another day.
Given Tesla’s most anticipated quarterly report ever tomorrow after the market close (which we will cover live), we expect CEO Elon Musk to be peppered with questions about the March reveal during the subsequent Q&A session.
Tesla's Elon Musk (Shown Here From Hong Kong In January) Has Always Been Consistent With Model 3 Pricing
Tesla’s Elon Musk (Shown Here From Hong Kong In January) Has Always Been Consistent With Model 3 Pricing
Ms. Brooklin declined to give any more information on the car, or steal any thunder from her CEO, but did offer some guidance on the Model 3’s arrival:
“The Model 3 is on time, and everyone is going to learn more about it at the end of March.  That’s when we’ve committed to talking about it and giving a really great update, and that’s what we’re going to do.”
Bloomberg also did some math on how long we can expect those $7,500 federal rebates to last until Tesla hits the 200,000 trigger that would start the phase out, and came up with a mid-2018 figure.
As it stands today, the US EV credit phase out begins at the start of the second calendar quarter after the manufacturer has sold 200,000 eligible plug-in electric.  So potentially there could be up to 6 further months of credits regardless of the amount sold, followed by 6 months at 50%, and another 6 months at 25%.
See example below:
Current $7,500 Credit Program Phase-Out Example
Current $7,500 Credit Program Phase-Out Example

Tuesday, 9 February 2016

Why Gold? Deutsche Bank And $60 Trillion Derivatives - Is It The Last Snowflake Before The Avalanche?

  


  Dan Stringer wrote a great article covering Deutsche Bank's exposure to derivatives, why it doesn't matter you can read in the official reports. Why it does matter market is telling us today: DB is at all time low, Credit Swiss is at all time low and Barclays is down another 5% today. As you know, I have a very unconventional theory: that actual state of financial system is so bad that they will save it by all means now. By the way, if they fail - it will not matter any more anyway. Tomorrow just watch Janet Yellen turning this market around and US Dollar will be the victim. Gold is shining bright now. We will have a very interesting situation with the majority of market participants reversing the trades this year from being Short Gold and other Commodities and Long Us Dollar, once the message from the FED will be clear - we have just made a policy mistake. FED has never had a chance to reload "Efficient Central Bankers Economy" gun this time. 





Why Gold? Debt Is An Elephant In The Room And It’s Going To Rampage.





   We have very interesting market action today and Gold is knocking now on $1,200 with Barclays bank halted in London due to the market volatility and Deutsche Bank crashed over 11% to 7 year lows. Gold is breaking out from the down trend now. FED will save the market, but we can forget now about 4 FED rates hikes for sure. Gold must retake $1,224 this week to ignite the short squeeze and if we can jump above $1,300 the Gold Bull will be back. Now we are entering the stage with banks when Bubble TV will be discussing "not a return on the capital, but the return of the capital." Samuel Bryan provides very interesting analysis of the Debt "crashing American economy", I can only add that it is not only U.S.


"Expect to learn the words Shale Oil Credit Bust and Derivatives related to it by heart in the next few weeks now from the headlines. I guess, that FED was too late to reload the "Efficient Central Bankers Economy Gun" in the end and now we all will face the music. This time the real panic will start among Central Banks even before the Retail: everybody became totally complacent these days - but "saved" World Financial System does not mean that everybody will have the Return of The Capital.  We can expect coordinated actions now starting with China, Japan, Europe and FED dialling down any further expectations about the Rate Hikes. Gold must be finally coming to life now." Read more.


The Last Chance To Prevent The Crash: Stock Market's Worst January Ever.

  



  "We have now the last chance to prevent the real Crash. If market slides below August 2015 Low the floodgates will be open and waterfall will bring us not only the worst January for markets on record so far, but the real Crash. I think that it will be averted by the coordinated action by all Central Banks now killing the US Dollar rally. It is an election year in the U.S. and nobody will be taking any chances. Realisation that not only FED rate hikes are not coming, but another QE is in order will drive Gold prices back into the Bull market. Read more."




"Expect to learn the words Shale Oil Credit Bust and Derivatives related to it by heart in the next few weeks now from the headlines. I guess, that FED was too late to reload the "Efficient Central Bankers Economy Gun" in the end and now we all will face the music. This time the real panic will start among Central Banks even before the Retail: everybody became totally complacent these days - but "saved" World Financial System does not mean that everybody will have the Return of The Capital.  We can expect coordinated actions now starting with China, Japan, Europe and FED dialling down any further expectations about the Rate Hikes. Gold must be finally coming to life now."






Gold And FED: Tom McClellan Predicted Major Market Peak In August 2015, Bear Market Into 2016.





  This original post was made in June 2015: Tom McClellan deserves a very good attention - majority of the commentators are just going with the flow, while his analysis is based on liquidity and forward looking indicators. He is a must to study. I am very impressed and following him closely now. Jim Rickards and Peter Schiff were talking about this coming outcome of the FED decision for many, many months as well. Finally the Black Swan created by FED is coming to all the markets. I do not expect Crash, as it will be impossible to recover after it with FED without any bullets left and 4 Trillion Dollars balance sheet. But when you look at FCX falling down today 17% below 5 dollars and Copper below $2/lb, you start to think who will blow up this time. Arch Coal - America's second biggest coal company has just announced the bankruptcy and Oil is sliding today towards $31 per barrel with both WTI and Brent. Expect to learn the words Shale Oil Credit Bust and Derivatives related to it by heart in the next few weeks now from the headlines. I guess, that FED was too late to reload the "Efficient Central Bankers Economy Gun" in the end and now we all will face the music. This time the real panic will start among Central banks even before the Retail: everybody became totally complacent these days - but "saved" World Financial System does not mean that everybody will have the Return of The Capital.  We can expect coordinated actions now starting with China, Japan, Europe and FED dialling down any further expectations about the Rate Hikes. Gold must be finally coming to life now.


Energy Metals Royalty Company TNR Gold Corp. Announces Restructure of Loan.

  
TNR Gold holds:



3. 25.5% in International Lithium, which develops J/V Mariana Lithium project in Argentina being financed by giant from China - Ganfeng Lithium. 



  Please carefully read my legal disclaimer and you can find all latest financial information about TNR Gold and International Lithium on SEDAR. Please never make any investment decisions without consulting with your preferred qualified financial adviser. Read more.







Dan Stringer:

Deutsche Bank: Just A Snowflake Away


Summary

Deutsche Bank has accumulated a substantial derivatives book, worth over 52 trillion Euros in notional value, over 50% higher than Lehman Bros. was at the time of its bankruptcy.
This large derivatives book makes DB vulnerable to potential Black Swan events.
The company's management oversight is in question as it is being investigated or litigated against by numerous parties.
This lack of oversight, combined with the sheer size and complexity of its derivatives, make DB a risky proposition in this increasingly volatile world.
In Nassim Nicholas Taleb's seminal book Antifragile, he outlines the concept of fragility. Fragility is an indication of vulnerability or being easily broken or damaged. It is a key component of complex systems. Today, we may not have a more complicated, man-made, complex system than the international financial system.
A financial system's basic tenant is to enable lenders and borrowers to exchange funds. However, as you increase the scope from a regional basis to a global basis, the complexities begin to abound with different currencies, different financial instruments and country-specific issues, such as the relative strength of each country's economy.
Financial instruments are tradeable assets of any kind, such as cash, equities, and bonds. They represent either an asset, a claim on an asset or a contractual right to an asset.
Derivatives, as their name would imply, derive their value from the performance of an underlying asset. They can fluctuate based on the price of the underlying asset and time. As these types of contracts can act as levered investments, they can potentially vary in value substantially, producing outsized gains and losses.
Derivatives were originally used mostly for hedging risk (for example, farmers could guarantee prices for corn, wheat etc. for the price of the derivative), but they are now mostly used as another type of financial instrument. The potential of outsized returns has caused them to proliferate extensively as speculators have adopted them as a way to increase their return on capital. Below are some common examples of derivative contracts:
Source: Wikipedia
Derivatives have added an extra layer to the financial system, making a complex system even more complex as now you can have significant fluctuations in not just the underlying assets, but in the derivatives of those assets, multiplying the effect. With the wider variety of counterparties available through the global system, these fluctuations are also spread globally as well. This magnification of risk is why Warren Buffett termed derivatives as financial "Weapons of Mass Destruction". Derivatives gone wrong were at the heart of the Long Term Capital Meltdown in 1998 and the Lehman bankruptcy in 2008 that triggered the Financial Crisis.
When we look specifically at where Lehman was at the time of its filing for bankruptcy, it had a derivative book of over $35 trillion in notional value over 900,000 contracts. Notably, its leverage ratio (capital to assets) peaked at an astronomically high 31x. The actual time to process the largest bankruptcy in history was over three-and-a-half years, with Lehman emerging as a liquidating company that still needed to settle its affairs.
It is widely assumed that the Financial Crisis of 2008 had made the banks learn their lesson with respect to risk. However, we will see that Deutsche Bank (NYSE:DB) has clearly not learned this lesson, making it extremely vulnerable to the many catalysts that could shock the global financial system.
Not Learning Its Lesson
Deutsche Bank AG is a German banking and financial services company headquartered in Frankfurt, Germany with operations around the world. Founded in 1870, the bank's operations range from private wealth management to corporate banking and securities to global transaction banking.
However, with size comes complexity. DB has operations in 71 different countries, so coordinating its businesses takes a high degree of management. My concern is that its operations have become too unwieldy. This is revealing itself in the number and range of legal matters and investigations that the bank is currently facing. DB actually had these investigations on a management slide in its most recent earnings call:
Since this earnings call, it has had several more actions initiated against it, including one by the Department of Justice. With this level of, at a minimum, alleged malfeasance, it appears management control has been severely lacking, making me question if appropriate risk controls are in place.
However, I believe this lack of risk control is even more apparent in the size of its derivative book. If we look at the notional value of its derivative book, the pure size of it is incredible:
Source: Annual Report 2014
This gives DB a notional value of its derivative book of 52 trillion Euros or $58.2 trillion, a full 66% higher than Lehman was at the time of its failure. DB's derivative book was 47.2 trillion Euros on December 31, 2007, prior to the financial collapse, so it is now at an even higher level than it was during the height of financial institution risk taking prior to the Financial Crisis.
Although this data is from 2013, this ZeroHedge graph illustrates the absolute magnitude of its derivative book:
As a comparison, I wanted to look at Commerzbank (OTCPK:CRZBF) (OTCPK:CRZBY), the second largest bank in Germany. It has a 3.6% CRD4 (capital requirements directive) fully loaded ratio, the same as DB. Commerzbank's market cap is only about a third of DB's, though. However, its notional derivative book is significantly smaller:
Source: Commerzbank Annual Report 2014
DB's level of risk is clearly not a symptom of the German banks, as Commerzbank's derivative book value is just 9.5% the size of DB's. It has been able to create an enterprise one third the size of DB (by market cap) with about 1/10th the risk level. This holds up in assets as well as CRZBF has $660 billion in assets, roughly 1/3 of DB's $1.8 trillion in assets.
However, DB trades at a TTM simple P/E ratio of 24.1 while CRZBF trades at 18.7x, a significant discount despite its less risky derivative book. For an American comparative, JPMorgan Chase (NYSE:JPM) trades at a P/E of just 11x. However, its derivative book is just as large as DB's. DB is clearly not being penalized for its risk taking and lack of management control based on its earnings multiple.
Where we start to see a risk discount reflected is in the price to book value of DB, which sits at just 0.46 (by comparison, CRZBF is even lower at 0.42 while JPM is at 1.0). DB's price to book has been in this range largely since 2009, not reflecting its continued increase in derivatives leveraging.
Jim Rickards described a potential economic collapse in the context of snowflakes landing on a ridge. You won't know which snowflake sets off the avalanche, only that one will. I believe that DB is at great risk to potential Black Swan risks due to the size of its derivative book. In the event that these types of transactions are impacted by an unanticipated shock (for example, the Swiss de-pegging of its currency to the Euro in January 2015), this could put severe liquidity risk in play. As we saw with Lehman, there is the potential that no one will be there to help them survive a liquidity squeeze.
If there is an attempt to try to unwind its book of contracts, this will not be an easy task. I include below the steps taken to unwind each derivative contract during the Lehman bankruptcy process:
Source: The Failure Resolution of Lehman Brothers, Michael J. Fleming & Asani Sarkar, December 2014
This will not be accomplished quickly and during a liquidity crisis, time is at a premium.
I believe that taking a short position in DB is a prudent position to take, especially as a hedge in a largely long portfolio. While I certainly cannot see the future, this is a bet against the fragility of the complex global financial system, of which DB is one of its most fragile entities.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a short position in DB over the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I will use long dated put options as a portfolio hedge.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks."

Lithium Race: Chevrolet Bolt EV Demand Shown With 33 Pre-Orders At One Dealer.


InsideEVs.


   We have a great start for the mass market for electric cars lithium race! InsideEVs reports about 33 GM Bolt pre-orders just at one dealer. Chevy Bolt is on track to be delivered this year. Tesla Model 3 will be unveiled in March at Geneva Auto Show and will hit the road in 2017. We are entering into the new phase of The Next Industrial rEVolution, when electric cars will grow exponentially from the very low base of 0.8% of total sales in the world. Just in China alone 26 companies are now making 51 models of electric cars. China has become the largest lithium market in the world, moves to claim the largest lithium battery market next and will become the largest electric cars marker in the world this year. Lithium is the magic metal at the very heart of this Energy rEVolution.








My Outrages Lithium Price Prediction Of $15k per MT Of LCE And Joe Lowry On China Lithium Market Upheaval.



Copyright Global Lithium LLC, used with permission.


  Joe Lowry makes very interesting observations about the dynamic in our Lithium Universe. China is the largest Lithium Market in the world now. Security of Lithium Supply becomes the most important element of your business plan, when market is growing exponentially. It is all happening even before Tesla Gigafactory is coming online with other Lithium Megafactories to follow. My prediction about $15k MT LCE prices in China now suddenly does not look totally outrages any more!



"Asia is taking the very important lead in this space as well. China is not only leapfrogging directly into the Lithium Energy Space with Electric Cars and Solar, but building the advanced materials base for this new Energy rEVolution. Panasonic, Nissan, Toyota, NEC, Sony, Samsung, Huyndai, LG Chem and others are staking its own place in electric cars now. China is the largest Lithium Market in the world already, moving to claim the largest Lithium Battery Producer title and Electric Cars in China will become the largest World's EV market early in the next year.
  Listen to that podcast, read the article about LG Chem and do your own research. Numerous companies are building Lithium Batteries facilities now in China: LG Chem, BYD, Boston Power (Ganfeng Lithium has 10% stake), Foxconn, Samsung, A123 - which will exceed even Tesla Gigafactory production capacity! 17 start ups only this year are trying to capitalise in lithium batteries market on the "War on Pollution" announced by China and state-level plan to build new strategic industry - Electric Cars. Read more."

Lithium Race: Will Price War Between GM Bolt And Tesla Model 3 Bring Us Mass Market For EVs?



  "Finally, GM Bolt is out as production model at CES 2016! What is even better: GM promises to deliver now 200 miles with around $30k price tag! We are getting to my 20/200 EV mass market formula now: when $20k buys you BMW 2 type EV with 200 miles range. The first Price War in the Electric Space is officially on now! GM Bolt is priced "around" $30k and is challenging Tesla Model 3 to be unveiled at Geneva Auto show in March this year. Elon Musk will easily match performance of GM Bolt, in my personal opinion. Tesla can deserve even price premium to GM Bolt: next move from Elon Musk will be very interesting - will he go for the bold statement and the market share by matching GM Bolt at $30k price tag instead of $35k?




  Later, Gigafactory will allow Elon Musk to be more aggressive with pricing with the increased volume, but what will be Tesla's move now? GM Bolt is supplied by LG Chem with lithium batteries: it will be very interesting to know the price and whether LG Chem is going for the market share as well now by selling lithium batteries below cost. I have never heard that LG Chem is working on the next stage of Lithium Solid State Batteries, can somebody help me here, please?
 Lithium Solid State Batteries can be the largest secret around Gigafactory and Tesla Model 3 future. If Elon Musk is really working on it now and will be able to commercialise it - we can talk about $100/kWh lithium battery cost, when 50 kWh lithium battery for Tesla Model 3 will be costing only $5k and will provide at least 200 miles range! Read more."





InsideEVs:



Despite GM only have taken the wraps off the production-intent Chevrolet Bolt EV last month at CES in Las Vegas and the NAIAS in Detroit, one Chevy dealer is showing that demand for the 200+ mile EV is already very high.
That dealer is Bourgeois Chevrolet in Rawdon, Quebec (Canada),  where part-owner Samuel Jeanson says he has already taken 33 pre-orders of the Bolt EV, despite the EVsarrival being almost a year off.
These orders on the Bolt have also been acquired even though the EV is still is not officially on sale by GM, it has no stated MSRP, and consumers putting down deposits today have no guarantee of any special early delivery dates by doing so.   These customers are operating only out of a strong desire to own the plug-in.
"Hey, Where Are All The Trucks And SUVs?" - Bourgeois Chevrolet Owners Out Front With Volt Fleet
“Hey, Where Are All The Trucks And SUVs?” – Bourgeois Chevrolet Owners Out Front With Volt Fleet (Mario Bourgeois, Hugo Jeanson and Samuel Jeanson)
We should also note that Bourgeois Chevrolet is not your ordinary dealership.
They also received the very first 2016 Chevrolet Volt delivery anywhere in North America…and they really love plug-in vehicles.  In fact, as AutoNews recently found out, they more often than not, attempt to convert customers attempting to buy gas cars, to make the switch into plug-ins – a refreshing change!
“Bourgeois Chevrolet sold a record 287 electrified vehicles in 2015, including 192 new and 95 used….(for the year) Bourgeois sold 704 vehicles in 2015, so that means more than 40 percent of sales were plug-in hybrids and EVs, all this in a town of 10,000 people about 50 miles from the nearest bigcity — Montreal.
“It is an amazing market,” says Jeanson, who has sold Volts to customers from as far away as British Columbia. “Even customers who come in for conventional product and ask for gas, we sell them an EV”
GM CEO Mary Berra With Chevy Bolt On Stage In Las Vegas
GM CEO Mary Berra With Chevy Bolt On Stage In Las Vegas
Today, the dealership looks to scoop up as many plug-ins as possible from GM directly, but they also roam auctions both in Canada and the U.S. looking for deals, while also taking in unwanted new Volts from other dealers.  Besides the 33 Bolt pre-orders, Bourgeois says they have 43 pre-sold copies of the new 2017 edition of the Volt, which just went into production last week.
Chevrolet Bolt EV (Interior Shown) Coming In Late 2016
Chevrolet Bolt EV (Interior Shown) Coming In Late 2016
Part of the difference between the Quebec dealer and other traditional retail models is that the business is family owned, and no sales people work on commission.
The owners freely admit that plug-ins take longer to both educate and sell to customers, but having sales people that are in no hurry to rush off to the next sales, is an advantage in this case.
“The dealership has been in the family 50 years, and we didn’t have any commission for 50 years,” says dealer Jeanson,  “People want to know how it works. It takes three to four times longer to sell an EV than a regular car.”
“If a salesman is selling an EV on commission, he’s not interested in selling an EV. They have the same price and less profit.”
AutoNewsHat tip to Breezy, Teng Y!