Government Electric Motors
You wonder why the stock
recently soared? The Wall Street Journal on its Opinion Page enlightened us
with an article aptly titled “The
Other Government Motors” published on 5/24/2013.
To quote from the article:
·
“Tesla's biggest windfall has been the cash
payments it extracts from rival car makers (and their customers), via its sale
of zero-emission credits.”
·
“A Morgan Stanley … report in April said Tesla
made $40.5 million on credits in 2012, and that it could collect $250 million
in 2013. Tesla acknowledged in a recent SEC filing that emissions credit sales
hit $85 million in 2013's first quarter alone—15% of its revenue, and the only
reason it made a profit.”
A Brief Remark On Zero Emission Credits
This is another attempt how
big government tries to fool its citizens. Electric cars are anything but zero
emission. To produce and maintain one vehicle and all its parts or to recharge
its batteries etc., I bet you, the emissions necessary are very similar to
conventional cars.
Lavish Government Loans & Subsidies On
Top
Only the affluent can afford
these vehicles at a sticker price of $70,000 or higher and they receive significant
government subsidies for buying them. If that is not income inequality, even
caused by government, what is?
To quote from the article:
·
“In 2009 the company received a $465 million
Obama loan guarantee, supplemented last year by a $10 million grant from the
California Energy Commission.”
·
“Any U.S. buyer of a Tesla car qualifies for a
$7,500 federal tax credit, while states like Colorado throw in up to $6,000
more in state income-tax credits.”
This is shameful and should be
stopped immediately!
The Business Of America Is Private Business
Not Government Business
Too few elected
representatives of public service employees have any foggy idea of running a
business or free market economics.
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