Newspaper tells of Musk largesse from government

According to calculations by the Los Angeles Times, California businessman Elon Musk and his Tesla Motors, SolarCity and SpaceX companies are sucking up $4.9 billion from the government trough.

The figure includes government incentives, including grants, tax breaks, factory construction, discounted loans and environmental credits, as well as tax credits and rebates to buyers of solar panels and electric cars. A hefty $1.3 billion of that comes courtesy of Nevada lawmakers in the way of tax breaks and abatements of the next decade for Musk’s battery plant near Sparks.

“The $1.3 billion that Nevada may wind up awarding Tesla is actually spread out over 20 years,” Musk said, adding that, “In order for the factory to receive that economic incentive we actually have to have an economic output from that factory of about $5 billion a year.

He said the factory will create 6,500 direct jobs, as wells as indirect jobs for support workers.

It also helps billionaire Musk to make a profit that otherwise might be elusive. The free market just won’t work.

Elon Musk (LA Times photo)

 

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10 comments on “Newspaper tells of Musk largesse from government

  1. Bruce Feher says:

    The government isn’t giving him anything, WE ARE!

  2. Rincon says:

    “The free market just won’t work.” Actually, it works very well for Musk. Nobody put a gun to the heads of the officials nor the voters. Musk would say it was a result of free competition among the states and localities to attract the fruits of his project.

  3. Vernon Clayson says:

    Too late to stop this but it will fold before there’s any worth or value coming back to the taxpayers, if it were such a wonderful thing private enterprise would have done it, Henry Ford didn’t get government funding.

  4. Patrick says:

    Just read this, didn’t know it, thought someone else might like to read it:

    http://www.bbc.com/news/magazine-32821678

    Pretty far sighted group of people, those Germans. It’s a shame this country doesn’t have the same perspective about the subject and we’re all at a competitive disadvantage because of it.

  5. Steve says:

    Interesting, competition and demographics inspire Germany to offer education in return for the possibility of a percentage of those immigrants staying in the country for a few years after school.

    An American university degree is still ranked tops among the the world and is the current reason for the cost. Perhaps Germany will become real competition to the US and will cause a lowering of US university tuition. Competition is good.

  6. Patrick says:

    Plenty of competition for Unicersity students in the US and that hasn’t resulted in a lowering of tuition.

    The message I got was that Germany understand the importance of post-secondary education and sees the value of it, not only for the growth of their economy, but for the good of the country, and is will to subsidize it by making a college education TRULY available to everyone (even non-citizens).

  7. nyp says:

    Germans see post-secondary education as a “public good.” A well educated population creates social benefits that are greater than the sum of individual benefits and costs. Reduced or free tuition to technical schools and universities is a way of properly accounting for the value of that public good.

  8. Steve says:

    Competition on this scale takes place globally today. Germany is subsidizing at 100% so they can capture the market and it’s working for them. For now.

  9. Patrick says:

    On a completely unrelated topic, but in honor of the first Triple Crown winner in 37 years, here’s a idea that never fails to bring a tear to my eye:

    https://m.youtube.com/watch?v=vfCMtaNiMDM

    In my humble opinion, the greatest athletic performance maybe ever by man woman or horse.

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