Without subsidies from taxpayers, this company would never have existed. I do not believe that Tesla has ever turned a profit yet its CEO has made millions.
We have a tesla dealership here locally but a friend told me the other day there are NO cars there. apparently you must put down a considerable sum as a down payment( none refundable no doubt) and then wait on the vehicle to be built? Has anyone else heard similar??
When electric vehicle prices drop below internal combustion prices (approx. 4 years from now) the market for internal combustion engines is expected to drop dramatically.
I'm pretty sure Tesla existed before the subsidies for the buyers.
I do not believe that Tesla has ever turned a profit yet its CEO has made millions.
I believe it has had a profitable quarter, but overall it has negative earnings. I'm not sure how much Elon Musk makes for salary, but he's put many more times that of his own money into buying Tesla stock, so I don't see how your statement holds up.
On subsidies:
When you buy a Tesla, you get a $7,500 rebate from Uncle Sam. While significant, this is 7% of the price of a Tesla Roadster, compared to 30% of the price of some Chevys. I believe Tesla Roadster would have sold almost as well without the rebate, especially since the rebate attracted other players (Fisker, Chevy, Nissan, etc.) who competed with Tesla.
On profitability:
Tesla didn’t report a profit, but only because it’s business plan relies on massive, future expansion, funded by the revenue generated from its highly profitable Roadster. They have attained $8 billion in assets based on about $half a billion investment. That’s fantastic business performance.
“I do not believe that Tesla has ever turned a profit yet its CEO has made millions.”
All profits are being plowed back into development. That’s the business plan while it it remains in a long haul growth stage.
Elon Musk made billions by creating and selling PayPal. He’s pouring that cash into Tesla. He’s not making a net profit. He actually created PayPal precisely to get the money for this project.
And the “subsidies” are ONLY tax credits, just like your home mortgage interest deductions. I’m all for lower taxes, and if that’s practically achieved by narrow cuts (our government isn’t going to give big cuts across the board) then leverage it as you can.