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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.
Nobody has ever used the battery swap station, but Tesla has been collecting credits they've been selling to other automakers. That's how they've been staying afloat: getting credits for something they've never demonstrated to the public. Driving a car behind a curtain and claiming that a battery has been swapped is not the same as a demonstration. That's the kind of dog and bullshit show that you pull out when your demonstration isn't ready.
They only actually have to manage the swap in five minutes to qualify for the credits, not 90 seconds. But there are a crapload of connectors and there's rumored to be adhesives involved, at least on early cars. But we haven't seen swap one yet.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Wrong. All money is interchangeable.
The subsidies you want to pay, then, is to the frackers, and shale oil extractors. Not to some dot.bomb Paypal wiz kid who's the new Paul Allen.
What difference does that make? I'm willing to bet that Apple, Microsoft, Google, and Facebook employ several times the number of people that Musk does, but don't take anything close to the amount of government money that Musk does.
Without the government teat, Musk is a talentless hack. He builds stuff for the wealthy, and has the poor and middle class taxpayers subsidize it.
What a dick.