Forum Discussion
John___Angela
Sep 07, 2017Explorer
Turtle n Peeps wrote:
Musk is farming the government. And doing quite well with this strategy. 5 Billion is nothing to laugh at! With 5 billion of our dollars one would think he could make money with his company.
But keeping it in perspective, those tax credits are available to any EV manufacturer not just Tesla although every body seems to focus on Tesla. So, GM, Ford, Nissan etc. And in the big scheme of things, how much does it cost to furnish a military to keep the shipping lanes open to the middle east so the oil continues to flow. Some context is needed here. There is also a technology race going on here. Is it better to throw money at a start up company on this side of the pond and subsequently have the leading technology here or better to import the technology and the vehicles from overseas. Every Tesla sold is directly taken from BMW or Mercedes.
Public records show that Tesla makes money on every Tesla sold, but he spends a ton of money on R and D and the losses continue to add up. At some point will it pay off. Who knows. The share holders think so...at least at this point. It will be interesting to see how history judges the decisions made now on supporting a radically divergent technology company.
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