Tesla

Tesla Soaks Nevada for $1.3B in Corporate Welfare; Just the Beginning

Tesla logoThere was little doubt that once CEO Elon Musk and Tesla announced they would locate their electric vehicle battery “Gigafactory” in Nevada, that Silver State lawmakers would vote in a special legislative session to support targeted tax breaks and incentives – even at the breathtaking amount of $1.3 billion.

Gov. Brian Sandoval, the courter, would have appeared an extreme fool if he didn’t already have the political backing needed for the deal. But there were other mini-surprises: Unanimity at the legislature; four separate bills passed to construct the package; and benefits enjoyed by other industries in Nevada that were rescinded to help with the Tesla payoff.

Tesla Wants to Put 'Gigafactory' Battery Plant in Nevada

Elon Musk ModelSOnly a year after Tesla Motors and CEO Elon Musk extracted themselves from the $465-million taxpayer stimulus loan that brought critical scrutiny to the company’s performance, the electric automaker has once again put itself under the spotlight that comes with taking government corporate welfare.

Today the company will announce its plans to build a battery manufacturing plant near Reno. The new gambit was the culmination of competition that pitted at least five states against one another for the “privilege” of hosting Tesla’s “Gigafactory” – named so because of the amount of stored power they plan to produce. Cost to build the plant is estimated to be $5 billion, and Musk said he expected the winning bidder to cover at least 10 percent of that, according to the Associated Press. That means at least $500 million in some form of incentives or conciliations from Silver State taxpayers.

Tesla Enthusiasm for Battery Swap Wanes After Subsidies Disappear

Elon Musk IronManNLPC has extensively documented how Tesla Motors has taken advantage of market distortions to reap revenues – including government mandates, subsidies, and taxpayer support – not the least of which have been so-called “zero emission credits” from the state of California. But much of the revenue Tesla enjoyed last year – which often meant the difference between profit and loss – was credited based upon theoretical technological capabilities and not ones actually put into practice.

CEO Elon Musk has also relied on accounting gimmicks to enhance his bottom line over the last 18 months, during which a couple of quarterly earnings reports even showed a profit – albeit under non-Generally Accepted Accounting Principles. Those handsome returns were achieved in part thanks to a scheme administered under the California Air Resources Board in which additional zero emission credits are awarded to vehicle manufacturers based upon the ability for models to “fast fuel.” In the case of Tesla and other electric vehicle makers, the faster a car can recharge to the point it can drive a longer distance, the more credits it receives.

Fisker Sold to Chinese, Another Tesla Fire, More Stimulus Failure

Elon MuskLast week bankrupt Fisker Automotive was sold to a Chinese company, and Tesla Motors experienced another fire in one of its Model S electric cars.

The Obama administration Green-stimulus losing streak continues. The two luxury electric automaking companies, where the Department of Energy deemed taxpayer “investments” should be placed at risk, don’t inspire confidence.

After Denial, Tesla Mailing New Connectors Following Calif. Fire

Emily LitellaWere the late Saturday Night Live cast member Gilda Radner still with us today, Tesla Motors might look to her character Emily Litella for its latest public relations campaign to address overheating and fires with its Model S charging systems.

“Never mind,” the Weekend Update commentator would say.

That’s was also essentially the response from Tesla on Friday when the company announced – after it had vehemently denied any culpability about overheating systems or power cords just three weeks earlier – that it would send all Model S owners new cords to replace the defective old ones. This followed a garage fire in Irvine, Calif., which local authorities blamed on either “a high resistance connection at the wall socket or the Universal Mobile Connector from the Tesla charging system.” New charger connectors will be mailed in the next two weeks, according to a Bloomberg report.

More Fire, More Subsidies for Tesla in California

Elon MuskThere’s that uncomfortable juxtaposition of words again: “Tesla” and “fire.”

This time was quite an accomplishment by the electric automaker’s publicity department: they kept the Irvine, Calif. garage fire quiet for over a month. The secrecy expired on the November 15 incident when the Orange County Fire Authority attributed the incident to the EV’s re-powering set-up, according to a report obtained by Reuters.

Hard to Take the German Absolution of Tesla Fires Seriously

Tesla Tenn fireFollowing incidents in Washington state, Mexico and Tennessee, the National Highway Traffic Safety Administration announced it would probe fires that occurred recently over a six week period in Tesla Motors’ electric Model S.

And this week, as revealed in a Detroit News story, the NHTSA looks like they’re serious – at least more serious than Germany’s transportation safety authority.

Tesla to Target Rich, Environmentally Conscientious Rednecks?

Obama and MuskTesla CEO, Elon Musk, seems to have reached cult status with green ideologues, as well as with many in the media. Musk's name often goes hand in hand with descriptive monikers like "visionary" and "genius." Of course, what Musk is really a genius at is getting politicians to fund his private businesses ventures with taxpayer money so they don't have to make a profit.

It might be time to step back and ponder just how genius Musk's latest idea is; which is for Tesla to compete with Ford's best selling F-series trucks by offering up an electric pickup truck.

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