Slashdot Mirror

← Back to Stories (view on slashdot.org)

How Elon Musk's Growing Empire is Fueled By Government Subsidies

Posted by timothy on from the damned-if-you-don't dept.

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.

9 of 356 comments (clear)

  1. Manufacturing buisness supported by government. by queazocotal · · Score: 5, Insightful

    Employing mainly Americans, manufacturing in America.

  2. I'll pay for subsidies here any day. by Anonymous Coward · · Score: 5, Insightful

    They forgot the benefit that it gets us out of the Middle East. That sandtrap is a massive waste of resources that I hate is being subsidized.

  3. Tesla Is Good For All by Anonymous Coward · · Score: 5, Insightful

    So we have a brilliant industrialist creating new pathways that we will all benefit from. In this case I hope the government gives him even more money. We need these technologies and a support system to actually conquer some of the issues that now confront us.

  4. A lot of what he's talking about aren't subsidies by cheesybagel · · Score: 5, Insightful

    Loans that were fully paid back (e.g. the one Tesla got). Space launches for the government that are *cheaper* than the other launch services the government is using. You can't call it a subsidy when they are selling the government a service.

    Most of the other clean tax subsidies are given to the clients (e.g. SolarCity, Tesla) not to Musk's companies directly. If they are that rich, as the author claims they are, I think they would still buy the cars to make a kind of fashion statement even if there was no tax break at all.

    As for the tax breaks he gets for building that factory its no different from what any other company doing a similar activity would get. Yes I know its crap but its the world goes.

  5. so what? by O('_')O_Bush · · Score: 5, Insightful

    Those tax breaks and subsidies were set up to encourage advancement in those areas by offering an economic incentive. Musk just did exactly what the government was handing out money for people to do... advance those areas.

    --
    while(1) attack(People.Sandy);
  6. Re:So what's news about this? by MightyYar · · Score: 5, Insightful

    Education is extremely well-funded in the US. We are, depending on how you measure, either #1 or #2 in the world. Funding is very uneven and the money is often not spent well. But you cannot say we don't fund education adequately. Reform is the answer, not more money.

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  7. Another way to describe this by whoever57 · · Score: 5, Insightful

    Another way to descript this would be:

    Elon Musk structures his businesses to support government priorities.

    --
    The real "Libtards" are the Libertarians!
  8. Re: We the taxayer get screwed. by catchblue22 · · Score: 5, Insightful

    ...he fossil fuel industry is subsidized more than 8b PER year in America...

    Not to mention that the Internet was started by the government. And companies like Lockheed Martin rely almost completely on government military subsidies. This article was a hit piece. The American media really is shockingly corrupt.

    --
    This and no other is the root from which a tyrant springs; when first he appears as a protector - Plato (423 to 327 BC)
  9. Re:We the taxayer get screwed. by patniemeyer · · Score: 5, Insightful

    and they go out of their way to hire veterans: http://www.military.com/vetera...

    And they doing their best to insure that most of the battery production in the world will be done in the U.S. in the future: http://www.teslamotors.com/gig...

    And oh by the way they are the future of the car industry... and perhaps getting the U.S. energy independent in a sustainable way...

    But yah, let's bitch about giving them tax breaks... because we need to save those for more worthy industries (sarcasm).

    Pat