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The Stench of Green Subsidies


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#11 stocks

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Posted 10 February 2016 - 12:55 PM

One Man, Elon Musk, Has Received 5 Billion in Govt 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.

Tesla and SolarCity continue to report net losses after a decade in business, but the stocks of both companies have soared on their potential; Musk's stake in the firms alone is worth about $10 billion. (SpaceX, a private company, does not publicly report financial performance.)

New York state is spending $750 million to build a solar panel factory in Buffalo for SolarCity. The San Mateo, Calif.-based company will lease the plant for $1 a year. It will not pay property taxes for a decade, which would otherwise total an estimated $260 million.

The federal government also provides grants or tax credits to cover 30% of the cost of solar installations. SolarCity reported receiving $497.5 million in direct grants from the Treasury Department.
 

 

Musk's holdings in solar panel installer SolarCity (SCTY) and electric car makerTesla (TSLA) are down a staggering $3.3 billion - just this year. Musk is the largest single owner of both companies - which together have handed all investors total market value losses of $14.8 billion this year.

 

Both Musk's companies have been falling out of favor with investors this year as the market punishes companies that are thin on profit but high on valuation. Falling oil prices have also taken out the urgency and enthusiasm over alternative energy plays.

 

ELON MUSK'S ROUGH YEAR

 

Company, symbol, % ch. YTD, Musk's paper loss

 

SolarCity, SCTY, -61%, $666,257,752

 

Tesla, TSLA, -37.4%, $2,596,965,278

 

http://www.usatoday....hammy/80086284/


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#12 stocks

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Posted 08 April 2016 - 09:40 AM

Tesla 3, Elon Musk’s latest four-wheeled exercise in rent-seeking.

 

A $35,000 (to start) car that cannot serve as your primary car, that requires you to have a practical car for road trips, cold days and so on… is a toy.

 

I am opposed to subsidies for products that cannot stand on their own two feet.

 

Musk himself is particularly annoying because he’s a billionaire who could have self-financed his company.

The fact that he looks to government for “help” tells you all you really need to know about what he himself thinks about the economic viability of his cars.

 

 

http://ericpetersaut...t-talkers-like/

 

 

 


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Gaia / Planet Worship was the pseudo-religion of the left. Now it's Harry Potter in public, 50 Shades of Grey in private


#13 stocks

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Posted 25 June 2016 - 05:34 AM

Tesla bails out SolarCity,

 

But who will bail out Tesla?

 

SolarCity is bleeding cash, and the suspicion is that Mr. Musk is engineering what amounts to a bailout by Tesla. The problem is that Tesla is also spending its available cash to develop its Model 3, which is billed as an electric car even the masses can afford. Tesla has an unusually high debt-to-equity ratio, and it isn’t obvious how adding another cash-needy company will increase value. Caveat shareholder.

 

So far Tesla looks more like a classic of the reverse income redistribution of green crony capitalism, in which middle-class taxpayers subsidize billionaires who make products to satisfy the anti-fossil-fuel indulgences of the upper classes. That Mr. Musk is reshuffling his Tesla balance sheet to subsidize his own solar venture is a sign that this may not be a sustainable business model.

 

 

http://www.wsj.com/a...tion-1466638430

 

 

 

 

 


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Gaia / Planet Worship was the pseudo-religion of the left. Now it's Harry Potter in public, 50 Shades of Grey in private


#14 stocks

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Posted 05 September 2016 - 10:39 AM

S&P rates Tesla B-. The next step down is CCC.

 

On August 1, S&P warned that it might downgrade it further, following its $2.6 billion acquisition of another money-losing, cash-burning Elon Musk company, over-indebted SolarCity. S&P slapped a CreditWatch “negative” on Tesla, based on “significant risks related to the sustainability of the company’s capital structure following the proposed transaction.”

 

With its lofty stock price – though it’s down 27% from its 52-week high – and its insane market capitalization, Tesla has the ability to raise money in the equity markets without breaking a sweat, as it has repeatedly done, including the $2 billion follow-on offering announced in May.

 

For now, investors are more than willing to pay an arm and a leg for a company that, after 10 years of existence, has not yet figured out how to stop losing money, and that sells so few cars that its sales are not even a rounding error in the 74.4 million new vehicles to be sold globally this year.

 

 

 

 

http://wolfstreet.co...edit-nightmare/

 


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Gaia / Planet Worship was the pseudo-religion of the left. Now it's Harry Potter in public, 50 Shades of Grey in private


#15 Rogerdodger

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Posted 28 September 2016 - 02:21 PM

Who loses with these treasury handouts? The children.

 

The state level is bad. Federal waste is even more worser.

Remember Solyndra?

The California-based solar company that went bankrupt after receiving $535 million in federal loan guarantees from the Obama administration.

One of many.

So far 112 subsidized solar frauds have closed and at least 36 "Green" fraud energy producers.

 

All at a staggering cost to whom?...our children.

 

But big donors to politicians must be paid back somehow.

 

wind_waste.jpg


Edited by Rogerdodger, 28 September 2016 - 02:22 PM.