I once almost literally stumbled into a Tesla dealership. I was walking back to the Metro after a lunch meeting somewhere in Downtown Washington DC when I looked over and in the bottom floor of a mirrored glass building were 2 Teslas and a salesman.
The Tesla is a beautifully styled car. Its siren song called to me. I walked into the dealership. The salesman told me it went 0-60 in 4 seconds. Impressive. With not a drop of gasoline. Even more impressive. Plus the door handles did this pop-out thing that was straight out of Star Wars. Very cool. But $85,000 cool? Not that it mattered for me. I am in the mini-van stage of life.
But there was a familiar smell to the showroom. What was it? All of Downtown Washington DC sort of smelled of it. Oh yeah, burning taxpayer dollars. The odor was especially strong when I opened the driver seat door.
Turns out Mr. Musk, has 3 ventures which run on taxpayer dollars. Tesla, Space X, and Solar City. All of them are economically unsustainable, but they are making Musk rich(er.)
(From Wall Street Pit)
Take Tesla for starters. It received the $465 mm loan from DOE, but it also benefits from a $7500/car federal subsidy for electric cars. Moreover, it benefits from the State of California’s Zero Emissions Credit program. In its infinite wisdom, CA mandated that all the major auto companies sell a certain number of zero emissions vehicles. If they don’t they have to buy credits from companies that do make them-namely, Tesla. This was also essential in putting the company in the black in Q1, and the company is sitting on $250 mm worth of these credits.