California "bailout" for Tesla

[DHG1078]

Yup, sure sounds like Tesla is doing great...

http://www.businessinsider.com/tesla-stock-price-california-state-government-bailing-out-2017-7

Not sure how CA has the funds to give 40 grand in taxpayer money to Tesla Model S and Model X purchasers. According to Liberals, those are the exact people who should be paying more in taxes, not getting potential rebates totaling more than people make in an entire year on minimum wage.

Also, how do you have a sustainable business model when it requires the government to subsidize your product?

 

[PhoenixM3]

First GM, now Tesla.....

 

[2000GTSTANG]

Enough with the bailouts. Let the businesses fail!

 

[DHG1078]

Our money could be used on so much more good things instead of bailing out failing businesses.

 

[03Sssnake]

The stupidity on the left coast is just staggering.

 

[Blk04L]

Tesla will soon hit the limit of the federal tax rebates, which are good for the first 200,000 EVs sold in the US per manufacturer beginning in December 2009 (IRS explanation). In the second quarter after the manufacturer hits the limit, the subsidy gets cut in half, from $7,500 to $3,750; two quarters later, it gets cut to $1,875. Two quarters later, it goes to zero.

Given Tesla’s ambitious US sales forecast for its Model 3, it will hit the 200,000 vehicle limit in 2018, after which the phase-out begins. A year later, the subsidies are gone. Losing a $7,500 subsidy on a $35,000 car is a huge deal. No other EV manufacturer is anywhere near their 200,000 limit. Their customers are going to benefit from the subsidy; Tesla buyers won’t.

This could crush Tesla sales. Many car buyers are sensitive to these subsidies. For example, after Hong Kong rescinded a tax break for EVs effective in April, Tesla sales in April dropped to zero. The good people of Hong Kong will likely start buying Teslas again, but it shows that subsidies have a devastating impact when they’re pulled.

That’s what Tesla is facing next year in the US.

Not exactly a bailout, like given to GM and others. Obviously it's geared towards Tesla to make sure people still have the "incentive" to go electric, and to the most popular brand/pull.

 

[DHG1078]

Tesla will soon hit the limit of the federal tax rebates, which are good for the first 200,000 EVs sold in the US per manufacturer beginning in December 2009 (IRS explanation). In the second quarter after the manufacturer hits the limit, the subsidy gets cut in half, from $7,500 to $3,750; two quarters later, it gets cut to $1,875. Two quarters later, it goes to zero.

Given Tesla’s ambitious US sales forecast for its Model 3, it will hit the 200,000 vehicle limit in 2018, after which the phase-out begins. A year later, the subsidies are gone. Losing a $7,500 subsidy on a $35,000 car is a huge deal. No other EV manufacturer is anywhere near their 200,000 limit. Their customers are going to benefit from the subsidy; Tesla buyers won’t.

This could crush Tesla sales. Many car buyers are sensitive to these subsidies. For example, after Hong Kong rescinded a tax break for EVs effective in April, Tesla sales in April dropped to zero. The good people of Hong Kong will likely start buying Teslas again, but it shows that subsidies have a devastating impact when they’re pulled.

That’s what Tesla is facing next year in the US.

Not exactly a bailout, like given to GM and others. Obviously it's geared towards Tesla to make sure people still have the "incentive" to go electric, and to the most popular brand/pull.

Hence why bailout was in quotes in the title. CA government is going to use taxpayer money to prop up sales and keep the company in business.

 

[Blk04L]

Hence why bailout was in quotes in the title. CA government is going to use taxpayer money to prop up sales and keep the company in business.

Oh I know. Just saw previous posts about GM/bailouts.

Guess Elon has some lobbyists at work/handing out kickbacks to politicians.

 

[Serpent]

Their plant is in the bay area is probably a big reason they are going through this.

 

[SID297]

Not a fan of gov subsidies.

 

[DHG1078]

This won't help Tesla sell vehicles outside of CA either. Although I bet most of their business is in CA.

 

[03Sssnake]

Not a fan of gov subsidies.

especially when they are primarily going to benefit the playboys buying these cars.

 

[Blown 89]

When the government stops propping Tesla up they are in big trouble.

I just spent some time this morning reading a few "news" articles about how unfair it is that we aren't taxing the skin off of rich people to help the freeloads in this country. I won't hold my breath waiting for the outrage over this.

 

[04MysticCobra]

Not a fan of gov subsidies.

Me neither and half of Elon Musk's fortune has come from taxpayer subsidies. People want to keep supporting companies like Tesla that sponge off the taxpayers. Not me and I would not buy anything related to Elon Musk's companies.

 

[Sonic605hp]

Seems legit, what a joke.

 

[RedVenom48]

Of course ****ing California would do that. Tax the shit outta CA residents some more! They have money laying around!

 

[08mojo]

I missed the part of the article where it states this is a bailout for Tesla...and I missed the part where it stated Tesla was looking for a bailout because it is performing poorly.

 

[BrunotheBoxer]

I missed the part of the article where it states this is a bailout for Tesla...and I missed the part where it stated Tesla was looking for a bailout because it is performing poorly.

Is English your third language?

 

[DHG1078]

I missed the part of the article where it states this is a bailout for Tesla...and I missed the part where it stated Tesla was looking for a bailout because it is performing poorly.

Bailout was in quotes. Its not a true bailout, but the government is providing subsidies to prevent a drop in sales as when subsidies disappeared in other markets, sales went to zero. Tesla can't afford to operate without subsidies.

 

[08mojo]

Is English your third language?

Bailout was in quotes. Its not a true bailout, but the government is providing subsidies to prevent a drop in sales as when subsidies disappeared in other markets, sales went to zero. Tesla can't afford to operate without subsidies.

My post wasn't really aimed at you. I know it's not a true bailout, and Tesla does certainly get help from incentives. Other's in this thread have immediately gone to "the sky is falling" mentality without even reading the article.