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How California Enabled Tesla By Forcing Competitors To Subsidize A Losing Business Model

• zerohedge.com by Tyler Durden

As we pointed out last month when they reported Q2 earnings, making products that actually generate a return on capital for shareholders isn't a strong suit of the Silicon Valley powerhouse.  In fact, Elon Musk managed to burn through a record $1.2 billion of cash in Q2 alone, or roughly $13 million dollars every single day.

But, as Bloomberg points out today, the one 'product' which Tesla is actually able to sell for a profit is one which was created out of thin air by the state of California and is perhaps the only reason that Elon Musk even has a business to manage.  Of course we're talking about the ever controversial "Zero Emission Vehicle" credits which are less of "product" and more of a subsidy provided by Tesla's competitors, or more accurately the consumers of those competitors who are forced to pay higher prices for their Ford Focus all so Elon Musk can practice digging tunnels.


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