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badkungfu | 11 years ago
In the article, he points out that Tesla's been given a lot of taxpayer money plus a lot of incentives for buyers to make their product more attractive. And now they now get to skirt around the market rules that other companies have been stuck with and had to build infrastructure and procedures to deal with more effectively.
Maybe Tesla's handouts should be pared back as they grow and are allowed to bypass the old rules.
toomuchtodo|11 years ago
Also, their vehicles receive the same incentives as other EVs produced by other manufactures. Perhaps other manufacturers should make more EVs (or EVs people will buy) if they would like to capture the benefit of those government incentives.
rahimnathwani|11 years ago
Yes, it is a gift. The loan was priced way below market, considering the level of risk and other conditions attached. The difference between the interest rate Tesla paid, and the market interest rate for the same amount of money, is a subsidy (or 'gift', if you prefer) from the taxpayer to Tesla.
http://www.slate.com/articles/business/moneybox/2013/05/tesl...
curun1r|11 years ago
One could argue that by not taxing the externality of their business (CO2 emissions), auto manufacturer's that make traditional gas guzzlers have been given far more government assistance than Tesla. The incentives that you speak of are intended to produce a positive benefit to society (less pollution) rather than as a handout to help Tesla.
gknoy|11 years ago