Tesla cost

In the free market a new product often comes out too costly for most but as the rich buy the cost per unit comes down and soon middle income people can afford it and with further price reductions the low income groups can buy. Using this concept Elon Musk came out with a very expensive electric car and using his personality and the desire of certain rich people to promote environmentalism he sold enough cars to make a less expensive model which more people could buy. He also took advantage of the governments desire to promote environmentalism acquiring billions in subsidies along with the government giving each buyer a $7,500 tax credit. Many who are concerned about the environment seem to be unaware that fossil fuels provide 63% of electric power.