State’s shining deal with Tesla showing tarnish?

Writers at the Seeking Alpha website are taking a more jaundiced view of the much vaunted Tesla Motors and plans for a gigafactory near Sparks that was given $1.3 billion in tax breaks by the state.

Paulo Santos opines that the gigafactory will be much smaller than the announced 10 million square feet, perhaps 80 percent smaller. He quotes Tesla head honcho Elon Musk as saying,” But what we have found is, with the Gigafactory, that as we spent more and more time on it, we found we’ve been able to improve the space efficiency of the production and the overall efficiency by more than our initial expectations. So the net result is that we think in the same volume we can do potentially significantly more output.” (Santos’ bold-face.)

Santos also notes that a union told its members in March the project was being cut by 80 percent.

Long/Short Trader has a headline that reads: “The Tesla Bubble is Bursting.”

It notes there are problems with the production of the first orders of the Model X, as well as “exaggerated promises, and profligate spending.”

The writer notes that Tesla has lowered its estimate for the number of cars it will ship for the year from 55,000 to between 50,000 and 55,000. “All of this should come as no surprise to Tesla watchers. Musk tends to promise more than he can deliver and then attempts to make up for shortcoming later on,” the article notes.

Then there is the problem of lower oil prices, as well the fact earnings per share continue to decline and remain negative.

When Musk’s SolarCity was awarded $1.2 million in taxpayer handouts to open an office in Nevada for rooftop solar installations, then-Secretary of State Ross Miller fawned, “You had me at Elon Musk,” while voting to award the handout.

Tesla gigafactory

31 comments on “State’s shining deal with Tesla showing tarnish?

  1. Rincon says:

    The3 philosophy of the Conservative is that the rich have earned their money if they did everything legally. The same should apply to Tesla.

  2. Bruce Feher says:

    Bend over taxpayers! Again.

  3. I somewhat agree Rincon…but neither of those two should have special tax breaks from the federal, state, or local governments. The government’s task is to assure a level playing field…

  4. Bad news for the Sandovalistas legacy

  5. Winston Smith says:

    You know, to the general public, when in the middle of the act, corporate/government copulation just feels so good, but the morning after, when you realize that you’ve just witnessed a couple of two-bit fascists try to use and abuse each other, it’s really not all that attractive…

    War is Peace; Freedom is Slavery; Ignorance is Strength

  6. Vernon Clayson says:

    Why is anyone surprised, why did anyone believe cars that cost 6 figures would sell in today’s economy, even 50,000 of them if they ever get built wouldn’t make them profitable. That place will look like Goldfield after it goes belly up.

  7. iShrug says:

    I follow Seeking Alpha. They don’t have faith in SolarCity, either. SolarCity is essentially a telemarketing finance company.

  8. Athos says:

    Aaaah. Just another reminder of why our government should be as limited as possible. These buffoons wouldn’t spot a good deal if it bit ’em in the rear. Either that, or it’s just another “kick back city” deal. (kind of like the Chamber of Commerce wanting Zero’s Iranian Deal- but not coming out publicly)

    Neither are acceptable. Ergo, limited government, please.

  9. Athos says:

    PS. Wanna buy a genuine Vegas strip monorail?

    Have I got a deal for you!

  10. Rincon says:

    Limited government should include foreign policy as well. Why are Conservatives always so ready to go to war, as in Syria or IS for example – or Iraq?

  11. Winston Smith says:

    I didn’t see too many Democrats complaining about Obama’s military incursions without a Declaration of War.

  12. Rincon says:

    Democrats are for powerful government, so an active defense department is consistent with who they are. Besides, Obama has been criticized many times by Republicans for not being aggressive enough. Which one is it? Is he a warmonger or a weakling?

  13. Athos says:

    Pinocchio is the antithesis of the American Way, Rin. (To answer your question)
    George Washington and Tom Jefferson wanted us to stay out of the affairs abroad but times have changed, haven’t they? No conservative I know, wants these stupid rules of engagement foisted on our military. Let the world fear us and leave us be, or unleash the hounds of Hell!

    And please don’t equate Jorge Bush with a conservative!

  14. Rincon says:

    Hannity and Limbaugh supported the war in Iraq at the time as did a raft of so called conservative commentators and politicians.
    I don’t remember many Liberals supporting it at all.

    I assume the antithesis of the American way is trying to keep from taking military action against every miscreant in the world. Yes, he is that.

  15. Rincon says:

    A far greater number of Conservatives than Liberals supported it, although some Libertarians intelligently have the view that we get far too heavily involved in the affairs of other nations (you guys might want to look into that). I mentioned Hannity and Limbaugh. Mark Levin supported it The house vote on the Iraq resolution justifying military action in Iraq: R – 48 to 1 in favor, D – 29 to 21 in favor. The Senate vote: R – 215 to 6 in favor; D – 82 to 126 opposed. I think of the Republican Party as more conservative than the Democrats. Do you disagree? BTW, Obama opposed it too Can anyone find a list of prominent Conservatives that opposed the war? The ones I can think of supported it. How about the liberal talking heads?

  16. Steve says:

    Hillary supported it.

  17. Rincon says:

    I did ask for a list, so I assume this is a list of one. Although I wouldn’t give her a pass, I would say there’s a big difference between her and many of the Conservatives pushing for military action. Hillary’s words at the time: “Because bipartisan support for this resolution makes success in the United Nations more likely, and therefore, war less likely, and because a good faith effort by the United States, even if it fails, will bring more allies and legitimacy to our cause, I have concluded, after careful and serious consideration, that a vote for the resolution best serves the security of our nation.” and, “A vote for it is not a vote to rush to war; it is a vote that puts awesome responsibility in the hands of our President and we say to him – use these powers wisely and as a last resort.” Which, of course, Bush didn’t. So she and many Liberals were in the position of either voting for the resolution or cutting the diplomatic legs out from under the President. Conservatives would have criticized either way. Nevertheless, she did vote to support Bush’s use of the military.

    Contrast that with Rudy Giuliani, who appeared regularly on Fox News at the time in support of the war”: “The logical next step after Afghanistan would be Iraq.”

    Face it. The Iraq war was far more strongly supported by Conservatives than Liberals. Even Glenn Beck (please add him to my list of Conservatives supporting military action) was big enough to admit that the Liberals were right: “Conservative pundit Glenn Beck admitted on his radio show Tuesday that he was wrong and liberals were right for opposing the invasion of Iraq. ‘[Liberals] said we couldn’t force freedom on people,’ Beck said at the start of his radio show on Tuesday. “You were right. Liberals, you were right, we shouldn’t have.” Unlike many Conservatives, Beck is not rewriting history.

  18. Steve says:

    never said conservative support wasn’t majority.

    On the other hand you said:

    “I don’t remember many Liberals supporting it at all.”

  19. Rincon says:

    I asked why Conservatives so often seemed ready to go to war. Athos said not to equate Bush with Conservatives. My point was that the war in Iraq was supported by Conservatives more than Liberals, which still stands. I said, “I don’t remember many Liberals supporting it at all.”, which I think is accurate. Not many does not mean none.

  20. Steve says:

    ” Not many” means very few. There were very clearly more than “Not many”

  21. Rincon says:

    Semantics. The point remains. Conservatives who want limited government don’t limit it very much overseas.

  22. Steve says:

    “Conservatives who want limited government don’t limit it very much overseas.” is very bipartisan.

  23. Rincon says:

    As I said, the Iraq War was primarily encouraged by Conservatives. Besides, Liberals don’t claim to want extreme limits on government. Conservatives do, except, apparently for the armed forces For that, they’re big spenders.

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  26. deleted says:

    Rincon I don’t remember ANY liberals that supported the war, or voted in favor of the congressional “authorization” for what ultimately became bush’s war against reason.

    Just because a representative has a little d next to their name, doesn’t make them a liberal. You were correct.

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