Photo: Catalin Garmacea
Building an electric-oriented company is no easy task, but you'd have to admit that except for happiness, money can buy right about everything, no matter where they came from.
On that note, Elon Musk might have raised $7.5 million for Tesla in 2004 and later invested $70 million of his own money into the company, but a lot of things happened for Tesla Motors with subsidies from the government and the same goes for SpaceX and SolarCity.
According to the Los Angeles Times, Elon Musk's growing empire was fueled by $4.9 billion as support from the government, offered as tax incentives, loans and other subsidies.
Quoted by the same source, Dan Dolev, an analyst at Jefferies Equity Research stated: "he [Elon Musk] definitely goes where there is government money. That's a great strategy, but the government will cut you off one day."
Elon Musk took the chance to defend the governmental aid his companies have been received by arguing that such subsidies and tax exemptions are just 'catalysts' and allow significant things happen.
Until this point, Tesla Motors received $2.391 billion. If we split this amount and trace back to where some of the money from, we get this:
- $45 million loan from the U.S. Department of Energy,
- $517 million from selling regulatory credits and,
- $1.3 billion in tax incentives courtesy of the state of Nevada, for building the Gigafactory.
It's true, Elon Musk and his investors also contributed and injected private capital into Tesla, SpaceX and SolarCity, but these figures are way smaller than the ones depicting the state's cash infusion into these three companies.
According to the Los Angeles Times, Elon Musk's growing empire was fueled by $4.9 billion as support from the government, offered as tax incentives, loans and other subsidies.
Quoted by the same source, Dan Dolev, an analyst at Jefferies Equity Research stated: "he [Elon Musk] definitely goes where there is government money. That's a great strategy, but the government will cut you off one day."
Elon Musk took the chance to defend the governmental aid his companies have been received by arguing that such subsidies and tax exemptions are just 'catalysts' and allow significant things happen.
Until this point, Tesla Motors received $2.391 billion. If we split this amount and trace back to where some of the money from, we get this:
- $45 million loan from the U.S. Department of Energy,
- $517 million from selling regulatory credits and,
- $1.3 billion in tax incentives courtesy of the state of Nevada, for building the Gigafactory.
It's true, Elon Musk and his investors also contributed and injected private capital into Tesla, SpaceX and SolarCity, but these figures are way smaller than the ones depicting the state's cash infusion into these three companies.
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