Posted on 10/28/2021 4:17:32 AM PDT by MarvinStinson
Paul Pelosi owns up to $1 million of Tesla call options
House Speaker Nancy Pelosi's husband hit pay dirt on Monday as Tesla's valuation rose to $1 trillion.
The news comes as Pelosi spearheads legislation that doles out tens of billions of dollars in subsidies to the electric vehicle industry, including Tesla, with provisions to build charging stations for cars and incentivize electric car purchases through tax credits.
The financial dealings of Pelosi's husband, Paul, came under scrutiny earlier this year when he purchased as much as $1 million of Tesla call options, one of the largest transactions of Tesla shares disclosed by a member of Congress. At the time, Republicans charged that the House speaker was cashing in on her power.
Members of Congress and their spouses are legally allowed to buy and sell stock, as long as it is not based on insider information. Members are required to disclose their transactions to the House Committee on Ethics, as Pelosi did with the Tesla transaction on Jan. 21.
Pelosi is spearheading negotiations with the White House as Democrats look to pass Joe Biden's Build Back Better plan and a reconciliation bill that includes the electric car incentives. Tesla, a pioneer in the electric car industry, is poised to see a significant boost from the legislation, according to industry watchers.
Democrats are proposing nearly $120 billion to fund various clean energy projects, and another $34.5 billion dedicated to zero-emission vehicles. The reconciliation bill also proposes $42 billion in tax credits for purchases of electric vehicles, which Democrats hope will incentivize new car buyers to purchase electric vehicles instead of gas-powered cars. The bill offers up to $12,500 in credits for each car. It also calls for tens of billions of dollars in spending to build charging stations for electric cars across the country.
Tesla's dramatic rise is likely attributable to several factors beyond the Democrats' spending proposals. Tesla founder Elon Musk recently announced he is moving the company's headquarters from California to Texas, which has no state income tax. Tesla's cars have also gained in popularity without federal incentives.
And while Tesla and other clean energy companies stand to gain with environmentally friendly Democrats in power, the company opposes some aspects of the reconciliation proposal, such as an additional credit for the purchase of electric cars made in unionized factories. Musk has publicly opposed unionization efforts.
Pelosi's office did not respond to requests for comment.
Yeah, I thought Elon Musk was somebody the democrats hate now.
Last I heard, these subsidies to EV makers were ONLY to big auto manufacturers who had unions.
Non-union auto makers are not going to get the democrat subsidy.
Tesla is non-union.
Tesla no longer gets direct subsidies.
But its buyers do get subsidy tax deductions which increases Tesla’s market and sales.
So, yes, Tesla is getting huge subsidies from the government, even if indirect.
Why are these “politicians” not swinging from a rope?
“Tesla more than paid back what subsidies it got.”
Really?
Explain how.
She made her money (and her husband as well) from insider trading.
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I think another article some weeks back on FR detailed how they mysteriously got offered over 20 IPOs and managed to have a bus stop just one block from an apartment building they own which more than doubled its value.
Enjoy it while you can, Pelosis. Your stock gains won’t help you at your judgment.
Explain how Tesla more than paid back subsidies?
Taxes.
Consensus is Tesla got about $5B in subsidies (broadly speaking). Elon Musk alone has paid more than that, being personally taxed at >50% every time he exercises stock options (which are “use it or lose it”); he paid $2.5B in taxes one year alone.
I dislike govt subsidizing private companies as much as you do, but if our representatives are going to do it, Musk is wise to take whatever $ gets thrown at him (I expect you’d accept >$1M; I sure take the mortgage interest credit), your beef is with your representatives not Tesla, and for once such subsidies worked well for taxpayers (generated more tax revenue without taking it out of your pocket).
Maybe the influence of greed and the influence of union backed traditional car manufacturers will cancel each other out. If so both camps can have equal access to the public trough.
Of course the best course is to let market forces decide if and when electric cars succeed. Unfortunately that will not occur.
"This is too much. I could really dig this. You know why? This happens to me every week!"
Elon Musk using taxpayer money again. He sells fake carbon credits to other car companies for billions.
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