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How Elon Musk's Growing Empire is Fueled By Government Subsidies
theodp writes: By the Los Angeles Times' reckoning, Elon Musk's Tesla Motors, SolarCity, and SpaceX together have benefited from an estimated $4.9 billion in government support. The figure compiled by The Times, explains reporter Jerry Hirsch, comprises a variety of government incentives, including grants, tax breaks, factory construction, discounted loans and environmental credits that Tesla can sell. It also includes tax credits and rebates to buyers of solar panels and electric cars. "He definitely goes where there is government money," said an equity research analyst. "Musk and his companies' investors enjoy most of the financial upside of the government support, while taxpayers shoulder the cost," Hirsch adds. "The payoff for the public would come in the form of major pollution reductions, but only if solar panels and electric cars break through as viable mass-market products. For now, both remain niche products for mostly well-heeled customers." And as Musk moves into a new industry — battery-based home energy storage — Hirsch notes Tesla has already secured a commitment of $126 million in California subsidies to companies developing energy storage technology.
If the people pass laws to promote businesses investing in developing new capabilities (e.g. space flight) then we WANT companies to do that work and thus get those grants, tax breaks, etc. That's how the airline industry got launched in the US, for example - huge government subsidies (airports, air traffic control system) and contracts (for mail delivery) that jump started the US airline industry, which was IMO a brilliant investment, because transportation doesn't just benefit the company providing transportation, it benefits everyone who uses transportation. Highways were another brilliant investment, funding construction companies and thus jobs, and creating a national road system that everyone benefits from.
The subsidies/grants/tax breaks that I object to are the ones that go to mature, profitable industries that don't need any support because they should be able to survive on their own. Oil companies and sports teams are just the most blatant examples. Agri-business corporations don't need subsidies, either - the farming grants should be reserved for the few percent of farmers who are independent, small family farms, and right now the money all goes to huge, profitable corporations that have huge resources and don't need the money, and relatively little to the small farms that need the support to survive the ups-and-downs of farming.
Enable 3D printed prosthetics!
OK, I bet there is an image of a crowd of thousands of men with their lunch pails all walking into their shift at the plant who then jump on the line and build cars.
No.
At best it's a couple of dozen people working in the back office and some techs to walk around and monitor the automated plant.
Tesla has 6000 employees
But go ahead and keep undermining your arguments with such unnecessary hyperbole, mister Anonymous Coward.
I'm a leaf on the wind. Watch how I soar.
At best it's a couple of dozen people working in the back office and some techs to walk around and monitor the automated plant.
A quick look at Wikipedia says Tesla had 10,000 employees in November of 2014 and SpaceX had 3,500 employees in April of 2015.
You didn't even bother with that much fact checking about what you 'know', though, did you. Your entire post is a demonstration of idiocy in action.
Also, much less than the incentives oil companies get. They buy a scarce resource (crude oil reserves) from the government for a fixed cost, instead of a "percentage of sales to customers" cost (as it would certainly happen if the government acted as a seller looking after the bottom line). But this scheme is so well hidden most people have no idea it even exists.
How funny.
Tesla employed over 6000 full-time last sept. That does not include ppl working on gigafactory.My guess is that with model X gearing up that it will jump to 10,000 by Jan.
Solar city employs full time over 8000 as of Dec, 2014. And they doubled last year They are still hiring like mad. Again, that does not include those working on the new 1gw/year solar plantS. On a side note , it turns out that solar employs more ppl than coal.
spacex employed more than 3000 last summer when they cleaned house of 150. In addition, they said that they would be at 3600 by 2015.
So, musk employs conservatily, 25,000 ppl and it is growing very fast. OTOH, the fossil fuel industry is subsidized more than 8b PER year in America. In fact, we pay 1 B / year to cover coal miners health. I would suggest that we look to kill a number of subsidies, esp in the fossil fuel arena.
I prefer the "u" in honour as it seems to be missing these days.
$4.9 billion? That's nothing compared to the Koch brothers. They got more than twice that amount.
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