Elon Musk has refused to accept that Tesla Motors Inc (NASDAQ:TSLA), SolarCity Corp (NASDAQ:SCTY) and SpaceX have benefited from government incentives totaling $4.9 billion. Speaking to CNBC, Musk said the remarks appearing in Los Angeles Times made it seem as though the company was getting huge paychecks from the government. Something that was not true.
Hadrian / Shutterstock.com
However, the charismatic CEO maintains that incentives are helpful for companies dealing with cutting-edge technology especially in the green energy space, but not entirely necessary. Tesla Motors Inc (NASDAQ:TSLA) has received incentives notably for the construction of its Battery factory in Nevada, but Musk believes the article got it wrong on some details.
“[…] adding everything that has ever happened and including things that will take the next 20 years to happen and then summing that into a single number and playing it today. Makes it sound that my company is getting a huge check, which is fundamentally false,” said Mr. Musk.
The executive took a swipe of the incentives that the oil and gas industry receive, terming what has been allocated to Tesla Motors Inc (NASDAQ:TSLA) and SolarCity as being ‘tiny pittance.’ The economic benefit that Tesla will provide to some states justifies some of the incentives allocated, according to Musk.
The Tesla Motors Inc (NASDAQ:TSLA) chief pointed out that incentives are usually necessary, in instances where voters of a particular area want something to happen faster. For example, the construction of the battery factory in Nevada is poised to inject hundreds of jobs into the state’s economy. Something that the voters wanted to occur as fast as possible.
“None of the incentives are necessary; this is an important thing to appreciate. None of them are necessary, they are all helpful these things tend to be characterized as either necessary or absolutely unnecessary,” said Mr. Musk.
The only incentives that Tesla Motors Inc (NASDAQ:TSLA) and SpaceX had bargained for are at the state level, packages that Musk assert’s had existed long before his companies came into existence.
Sentiments in the article according to Musk may have been fueled by some auto companies that don’t want to go electric and fear the disruptive effect that Tesla Motors Inc (NASDAQ:TSLA) is causing. Musk also acknowledged that Model S is an expensive car in the electric car space, reiterating that they are working on coming up with a cheaper model by 2017.
I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.
