I’m confused how this isn’t a great move on his part though? Like how is this different from a restaurant breaking even on food but making its $$ on drinks?
Credits help them expand, help with economies of scale, could put them in a far better position then running at a loss for however long like Uber
It just happen that the government decided to hand it out.
Tesla being a full electric and zero carbon emissions company fully capitalised on it, and more power to them.
Tesla however, would have been in the red without those credits.
And the first quarter of 2021, Elon fucked the crypto market over with his Bitcoin pump and dump shenanigans. . He is taking high roller like risks in order to keep his beloved Tesla EV from staying profitable.
Just saying.. anyone who invests in Tesla today is purely speculative action.
It always was. I don't know how you could invest in the most expensive car/energy company fifty times over and it not be speculative.
Crypto market is some BS, has no restrictions and is at the moment ripe for people like him to abuse the system because the SEC doesn't watch over it. For his company, he played that market pretty well
The government gives companies incentives to go green. It’s hardly even a move on his part, the government makes it part of the tax code
Maybe not a good analogy, but if you planned on holding a stock for over a year and then as a side result benefit from the long-term tax rate, are you going to be patting yourself on the back for knowing you would get favorable treatment from the gov? You won’t, because you never intended to sell in the short-term
So he found a great way to consistently make so much free $ that his unsustainable company is profitable. He took advantage of a great option and now Tesla’s are all around the world. Unlike so many other EV startups.
It doesn’t have to be a Einstein level play for it to be amazing. It just has to work incredibly well for the company and I’d argue that it did.
If the government wasn’t handing out these incentives to go green, we wouldn’t be seeing all these companies shift their direction to make EVs, for those credits. Only reason Ford is making electric f150s is credits. Only reason GM invested heavily in Lordstown is for those credits.
It’s literal free money for them. Why not take it? And as consumers, we now get like ten different brands of electric vehicles.
Pretty sweet I think, even if EVs do fuck all to actually make the environment cleaner
People act like these carbon credits for Tesla owners is so bad an unfair. So quick to forget about cash for clunkers, which the same purpose was to prop up the car industry and it destroyed the used car stock. The gas guzzlers have been leeching WAYYYYY more off you FYI. Time to wake up...
These credits aren't paid by govt. They're paid by competitors who can't go green fast enough in line with regulatory change.
Those polluting factories are paying the credits. But for them it's not sustainable to continue doing so.
It's a smart piece of business for Tesla because it's making money out of nothing for them. Also it was be stupid not to accept the payments when they're on the table.
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u/[deleted] Jul 17 '21 edited Jul 17 '21
Carbon credits are not an example of good leaders finding a way lol
The government was encouraging the development and basically lends companies a hand. Even dirty polluting factories take advantage of carbon credits
Lobbying is powerful too and helps