Los Angeles entrepreneur Elon Musk has built a multibillion-dollar fortune running companies that make electric cars, sell solar panels and launch rockets into space.
And he's built those companies with the help of billions in government subsidies.
Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.
"He definitely goes where there is government money," said Dan Dolev, an analyst at Jefferies Equity Research. "That's a great strategy, but the government will cut you off one day."
Exactly what I've been saying. But of course Musk will have sold all of his stock by then.
Alternative headline: "Super rich guy gets super rich selling rich guys fossil fuel-powered car subsidized by taxpayers." (Teslas plug into the wall, and aren't charged with pixie dust).
"Our favorite holding period is forever." -- Warren Buffett
Lumping all the subsidies together is meaningless. Some of the subsidies are to encourage R&D, some to encourage consumer behavior. Some of the biggest, like the Nevada subsidies, are to bring jobs to the state. All states tempt corporations with these subsidies.
That Musk is good at positioning his companies for these subsidies is a credit to him. He wins them all on the merits.
Whether government should incentivize corporate and individual behavior with subsidies is a complex economic question that is not best answered by political debate.
So taxpayer subsidies should not be a political debate? Perhaps we could get some non-partisan greenies to form a board to determine who gets this money and not ask the taxpayers how their money should be allocated. The only thing I am surprised about is that Musk wasn't involved in Solyndra. Yeah I guess the best way to determine these subsidies would be to let Al gore figure it out. That way we would know none of that money would be going into his pocket.
mercel: It's been a long strange trip - good to see you're still around (and in AAPL -my assumption).
May 10, 2019 12:48:32 GMT -5
Zeke: Long time no see. Nice to see familiar names still here.
Mar 25, 2019 14:42:52 GMT -5
sponge: Regarding the future of VR, I think it will be huge. I was a gamer when I was in college. But as an adult I lost interest. Last fall I flew up to visit my son at college and check out his new Vive set up. After playing with it for the weekend, I was
Apr 29, 2018 15:25:17 GMT -5
galleybob: thanks for your answer. I will copy and send to her
Nov 7, 2017 15:32:18 GMT -5
rickag: So since Jan 28th 2015 AAPL is up from 117.27 to 157.21
Aug 21, 2017 20:09:43 GMT -5
artman1033: VXAPL = 29.21 AAPL = $117.27 AFTER EARNINGS
Jan 28, 2015 14:54:46 GMT -5
artman1033: VXAPL = 44.94 AAPL = $110.39 BEFORE EARNINGS
Jan 27, 2015 11:12:53 GMT -5