for buying a car?
where's the snowmobile tax credit, or the refrigerator tax credit... how about a new pair of sneakers tax credit?
Subsidies' Impact:
Tesla received a $465 million loan from the U.S. Department of Energy, which was crucial for scaling production and development.
Regulatory credits, earned for surpassing emissions standards, have generated significant revenue for Tesla, contributing to its profitability.
Without these credits, Tesla would have faced a $700 million loss in 2020, according to an analysis of SEC filings.
Tesla’s early survival
Tesla has received relatively modest government contracts in the past. But it got a lot of help getting started, critical help.
In January 2010, Tesla was starting out and had sold less than 2,000 cars in its history. Then the company received a $465 million low-interest loan from the Department of Energy, months before its initial public offering. With the loan, it developed its Model S car, its first major success, and paid back the loan early through proceeds from an additional sale of stock in 2013.
As Tesla started to sell cars, a $7,500 tax credit for EV buyers allowed the company and other automakers to sell American-made EVs at a higher price than the market might‘ve allowed otherwise.
Tesla buyers received federal tax credits worth an estimated $3.4 billion before the perk disappeared entirely for Tesla buyers at the end of 2019. Even if that only allowed Tesla to raise prices by half that amount, that’s another $1.7 billion in federal help when the company was facing a cash crunch.
The tax credit was restored in 2023 as part of the Biden administration’s Inflation Reduction Act. But Musk has encouraged the incoming Trump administration to end the $7,500 tax credit, which would seem to be against Tesla’s interests but would be a blow for established automakers seeking to get a share of the US EV market. Those legacy automakers would have to accept bigger losses on their EV sales or pull back on offerings, which would reduce competition for Tesla.
“Take away the subsidies, it will only help Tesla,” Musk posted on his social media platform X in July.
https://www.cnn.com/2024/11/20/business/elon-musk-wealth-government-help/index.html
take this however you see fit, I was opposed to all this since long before Elon became someone's best buddy for a quarter billion dollar campaign donation... here
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Crnr2Crnr ·
gary6741 Newest Member ·