Guest Post by Eric Peters
Elon Musk may be the ultimate crony capitalist – the PT Barnum of our time.
But to give PT his due, he was an honest con man.
He never used the government to make his marks hand over their money. People stepped right up without a bayonet in their backs.
Elon, on the other hand, depends entirely on the coercive power of government to line his pockets. Take that away and Musk goes away.
Unfortunately, he’s not going away. He’s going deeper.
Automotive News reports that Musk is not only fleecing taxpayers via multi-tiered subsidies for his electric turduckens. That’s old news.
Here’s the latest news:
The Michigan Department of Treasury has bought (with funds fleeced from taxpayers) 339,623 shares of Tesla stock – the proceeds of this “investment” (if there ever are any) to be used to fund the pensions of retired state workers.
Priceless.
The small termites helping feed the queen – so to speak.
The stock buy amounts to another $72 million in wealth transfer from the taxpayers to Tesla. That’s how one becomes a billionaire in crony capitalist America.
But the small termites – the retired government workers – might not like the return on this particular “investment.”
Tesla takes in lots of money, but doesn’t make very much of it. The operation depends entirely on the IV drip of wealth transfer via multi-level mulcting of the American taxpayer.
Tesla doesn’t sell cars, for instance. It gives those away.
It sells primarily carbon credits – a little-known scam the media rarely (if ever) mentions during Fan Boy coverage of Musk and his economically preposterous, functionally ridiculous but very politically correct electric cars.
What’s a “carbon credit”?
It’s a chit “sold” to a real car company – one that makes cars that don’t need multi-tiered subsidies to attract buyers. The credits are used to offset the Zero Emissions Vehicle (ZEV) mandates in states like California, where the automaker is legally obliged to sell a certain number of “zero emissions” vehicles each year in order to be allowed to sell any vehicles that year. (This could rise to 15 percent of all new cars sold; see here.)
Only electric vehicles – which produce their emissions elsewhere – meet this ZEV mandate.
The problem is electric vehicles don’t sell.
Nissan has fleets of all-electric Leafs it can’t give away. The VW eGolf might as well come standard with a fresh cow pie on the dashboard.
Even Toyota has had a hard time finding people willing to buy the plug-in version of its otherwise popular Prius hybrid – which isn’t even a full-on electric car.
They are too expensive – and come standard with too many hassles. And so, they sit.
This is embarrassing.
In order to avoid the embarrassment (and carrying cost) of parking lots full of shiny new electric lawn ornaments, the real car companies are effectively forced to buy carbon credits from Musk, whose entire operation qualifies as “zero emissions.” It’s a form of extortion.
This is how Musk makes billions.
The government imposes a mandate, legislating a “market” for something that would otherwise have no chance of surviving in the real market. Crony capitalists like Musk then cash in, providing whatever it is the government has mandated.
What could be better – from the crony capitalist’s viewpoint – than having the government force others to buy what you have to sell? It’s despicable, but very profitable. Just ask the insurance mafia.
The carbon credits are not directly bought by taxpayers, it’s true. But because the real car companies are forced to buy them (it’s either that or build – and then give away at a huge loss – a fleet of “zero emissions” electric vehicles) they do so… and then pass along the bill to the taxpayer, in the form of higher prices.
Either way, Musk pockets the difference.
And now he’s got state governments funding him on the back end, too.
Buying stock in his operation.
Which is a slick move – you’ve got to hand it to ol’ Elon – because it further beds him down with the state and its legions of ever-dependent (even in retirement) “workers.” Tens of thousands (possibly, hundreds of thousands) of very politically active – very unionized – government retirees who are now vested in Tesla. Plus the legions of current “workers” – whose future checks will depend, in part, on the profitability of Tesla.
Times California and other states that have also bedded down with Elon.
It makes it very hard to imagine ever getting rid of Elon.
The problem – channeling the ghost of Margaret Thatcher – is that eventually, you run out of other people’s money. When that happens, the checks begin to bounce.
But by then, Elon will be long gone.
Just like our dollars.
Step right up!
Another thing that put PT on the honest side of things, he never denied he was a con man and actually admitted he was in his own manner.
You can’t say that about Musk.
Country mouse needs to get his ass out of bum fuck wherever it is he lives and realize Tesla is on the verge of changing the automotive landscape. In an urban area, Tesla is a brilliant product. They don’t sell? I see them every day, lots of them. Nissan can’t give leafs away? Surprise. It’s a shitty looking car. I see a few BMW I8’s every week, and i saw an Aston Rapide, which is basically a 1000 hp tesla. Electrics are coming. They make sense. Doesn’t matter if country mouse likes them or not.
star…don’t disagree overall, simply cuz it is like the stock market – Don’t fight the Fed. BUT, it stinks !!!
OTOH, Tesla’s are subsidized for the wealthy, just like QE and ZIRP are programs for the wealthy and especially the major corporations (includes Banksters), Hedge Funds, and Private Equity Groups (all the money guys).
How can you support something where the average joe is getting fucked?
Take away all the tax subsidy (for those rich enough to afford one) and see how well they sell.
Guys, don’t drink eric’s koolaid. Probably made from prunes. Nissan leafs, chevy volts, all that non selling crap qualifies for the same tax credits tesla does. Don’t sell? Tesla says it’s on track to sell 50,000 units this year. That’s not nothing. Tesla has about 400,000 deposits for it’s model 3. Only about 200,000 units get tax credits. Think of the chunk of business tesla is about to take from BMW and Lexus. Made right here in the USA. How is the average joe getting fucked? A tax credit? Big deal, and as noted, available to every other car company. Nissan leafs aren’t expensive, any fool that buys one can get the same tax credit a tesla fat cat can. Michigan and california aren’t uncle sam. And tesla stock might be a great investment for michigan’s pension fund.
Spoken like a true statist. If they can’t sell on their own merits, then they shouldn’t be made. I’ve heard you go on about the little guy getting screwed all the time in obama’s america, what do you think this is? This is the American taxpayer subsidizing expensive toys for rich people. Its disgusting. I have no problem with electric cars. Sure, in some areas they make perfect sense. People should be free to buy them, or not, at their discretion. But they damn sure shouldn’t be subsidized by the tax payer.
Musk also shouldn’t be getting rich off a fictional government creation like “carbon credits”. Its absurd. A “car company” that makes no money selling cars, but by selling an artificially scarce .gov creation to real car companies (who make their money building and selling cars) who are forced, at gunpoint, to buy these things.
Gator, you are taking koolaid eric at face value. Carbon credits are a california scam. Maybe tesla has sold 100 million dollars worth in the last 3-4 years. They’re going to sell five billion dollars worth of cars this year alone. On paper it looks like they’re losing 20 grand per car. Nonsense. That money is being spent building the factories where they intend to build 20 billion dollars worth of cars in 2018, all with zero tax credits. Watch.
Starfcker:
Where are these factories being built?
Sparks nevada and fremont california
Without govt subsidies (outright theft of your labor) they would only sell a handful of these every year. Not exactly a viable product.
The irony is that Tesla cars are completely useless and pointless in Michigan. The thought of driving an electric car on Michigan roads in a Michigan winter makes me cringe. But it might be smart for them to buy the stock anyway, since they could be frontrunning every central bank around the world!
Why would a tesla be useless in michigan?https://teslamotorsclub.com/tmc/threads/cold-weather-driving.64591/
From the article you linked: “I encountered the worst-case scenario for Model S range last winter by going Christmas shopping in extreme cold (below -20C). Drive 20 minutes, cold soak two hours, repeat all day. I used most of an 85 kWh battery pack in relatively few miles.”
the car burns power at a rate of 12kw just sitting at a stop sign in cold weather. He used up an entire battery pack just by driving to a few places. What happens when there is a power outage in the middle of winter? You’re basically screwed. It is such a huge and potentially life threatening risk that no one with a brain should ever take this risk. If you lose power you need to at least have the option to get out. Especially if the power doesnt come back on after a day or two. You never know when it could happen and it just isnt worth the risk, especially when for the same money you can easily buy a 4×4 truck with a giant gas tank like I have.
What happens when the EPA shuts down all those coal fired power plants?
We’re going to have fun with this one over the next few years. Maybe some of you, like koolaid eric, have never seen a tesla. Maybe some of you,
like koolaid eric, live so far out in the middle of nowhere a car with a 200 mile range is impractical. But think of our fearless leader. A tesla model 3 would be a practical car for a man with his commute. I’ve been studying commuter cars lately, as i plan to doomstead next year, and for the first time in my life, will have a 65 mile commute. A model S tesla is said to cost about 65 bucks a month to keep charged. A model 3 is smaller, so probably cheaper. Well fuck me, that sounds great.
These things might make sense in the environment you describe. Two problems come to mind though. 1. The govt. NEVER does anything in a prudent, common sense manner. 2. Without uncle sugar, TESLA has no business model.
A 65 mile commute with a car that gets 200 miles to the charge? I hope that’s round trip, not one way. I also hope it’s not too hot or too cold, as that will also decrease your range.
Also, since you are doomsteading, that means you are well aware that there could be some, shall we say, disruptions to things in the future. How’s that going to work for your tesla stuck on the highway with no way to recharge in the event of something bad happening. Sitting in traffic for a few hours in the heat, or cold, and you’ll wind up with a dead battery and no way to recharge.
What’s funny is watching some bankster in his pretty lil electric car sitting in traffic on route 3 waiting to enter the Lincoln Tunnel with a 90 minute backup. Maybe they should include a tow package with a gas powered generator when fuel, oops, I mean voltage expires.
Starfcker can get a great deal on this used Tesla
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Tesla Spontaneously Catches Fire, Burns Down During Test Drive In France
by Tyler Durden
Aug 15, 2016 10:36 AM
After Tesla’s latest problem involving a Model S crash in Beijing while in autopilot mode (which has since prompted the carmaker drop remove “autopilot” from its Chinese website), Elon Musk may have to return to a more familiar problem plaguing his vehicles: spontaneous combustion.
According to Electrek, as part of its ‘Electric Road Trip’ tour for the summer, Tesla stopped in Biarritz, France to promote Model S and Model X over the weekend. During a test drive in a Model S 90D, the vehicle suddenly sent a visual alert on the dashboard stating that there was a problem with “charging”. The Tesla employee giving the test drive made the driver park the car on the side of the road and all three (the driver, the Tesla employee and another passenger) exited the vehicle.
The Tesla Model S caught on fire only a moment later (pictured above), according to witnesses. Firefighters arrived quickly on the scene to control the fire, but the vehicle was completely destroyed. The result was reportedly similar to the remains of the Model S that caught fire while Supercharging in Norway earlier this year.
The website adds that it is talking to members of the Tesla Motors Club in France and reaching out to Tesla.
While the traditional Tesla defense applies, namely that while electric vehicle fires are widely reported there’s no evidence that there are any more frequent than gas-powered car fires, what is particularly interesting here – though it could change since the story is still developing – is that previous instances of Tesla vehicles catching fire happened after severe impacts, especially after debris on the road punctured the battery pack at high-speed.
Those incidents stopped after Tesla added a titanium shield on the bottom of the battery pack, but so far there’s been no report of an impact in the case of the fire in France today.
The cause of the fire is still unknown. A Tesla spokesperson sent Electrek the following statement:
“We are working with the authorities to establish the facts of the incident and offer our full cooperation. The passengers are all unharmed. They were able to safely exit the vehicle before the incident occurred.“
The developing story has yet to hit the mainstream news.
Did you have to post that, jim? Read the article. Just a little “charging” problem. Move along.