 We cannot exist without you. |
Let's Git-R-Done! Monday is June!
Posted on 05/31/2015 1:52:41 PM PDT by Rockitz
If you build it we will come could be the mantra for Los Angeles billionaire mogul Elon Musk.
Well the Los Angeles entrepreneur built Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, and what came was an estimated $4.9 billion in government subsidies, according to data compiled by The Los Angeles Times.
“He definitely goes where there is government money,” said Dan Dolev, an analyst at Jefferies Equity Research. “That’s a great strategy, but the government will cut you off one day.”
Now after a plethora of government incentives, such as grants, tax breaks, factory construction, discounted loans, environmental credits that Tesla can sell, tax credits and rebates to buyers of solar panels and electric cars, questions remain whether these companies can make it on their own and are they worth the investment of taxpayer funds.
Although stock prices have risen for both Tesla and SolarCity–Musk’s slice of the pie is estimated at $10 billion–both companies haven’t made a profit in over 10 years and are still reporting huge net losses. Tesla stock has risen 157% over the last two years, to $250.80 as of Friday’s close.
Space X, the L.A. mogul’s private company, does not have to show its financial statement—a private company which enjoys more than $5.5 billion in government contracts from NASA and the U.S. Air Force.
Unfortunately, Musk and his companies’ investors reap all of the financial rewards of the government support, while taxpayers assume much of the cost.
(Excerpt) Read more at breitbart.com ...
I have a friend who extols Musk’s electric car. When I mentioned the billions of taxpayers’ money thrown at this leftist, my friend denied that such was the case. He is blinded by his amazement of electric cars.
“questions remain whether these companies can make it on their own”
rather the understatement///
His standard business plan is to capture the market by undercutting on price and then make his money on the public offering. The price per launch he quotes for a Falcon 9 is way under what it’s costing him. An IPO would ferret that out in short order, which is why he keeps SpaceX private. He’s lost a ton on SpaceX and needs to recoup that in the DoD/NASA market.
>>“questions remain whether these companies can make it on their own”
If there really are questions, then they are largely rhetorical. None of these unicorn-powered companies could make it on their own.
We cannot exist without you. |
Solar City actually has a chance with the huge government subsidies available. If you’ve ever gotten a quote on a solar power system, you know the profit margins are huge compared to other home improvement operations.
a billion here, a billion there....
Just gotta pay the bills.
>>Solar City actually has a chance with the huge government subsidies available.
My point exactly. Government subsidies to the consumer are still tax dollars being used to prop up a business that cannot exist on its own.
And this in a nutshell is my issue with Musk.
He’s connected to the US printing press through various government connections and is making billions doing so. They rest of us that aren’t have to earn it the hard way while being taxed to death.
But many here continue to praise him...
What was the name of that solar company we paid for again?..../$
Musk is a dilitante. Without government funds he would have NOTHING
its a wonderfully strange coincidence that theyre all GREEN....companies isnt it.
We’re giving them the green ..and they are pocketing it.
he is rich because he sold paypal,that sale funded spacex and tesla
Cronyism in the age of Obama.
Only difference between Musk and the other Green Tech scammers is that he’s actually produced something after getting all that Govt Green. It’s the only reason that I haven’t been more vocal about his sucking on the government teet. But in the end he’s just the latest flavor of government contractor.
the feds fund Tesla
Plus his management style is the same as Attila the Hun.
The only reason hes gone this far is taxpaywr subsidy after taxpayer subsidy.
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