Tesla says its new plant it plans to build will make the company’s next electric Cybertruck pickup truck, as well as one to build its Model Y SUV. Tesla chose a location in Travis County for the plant. (Tesla /TNS)
Tesla says its new plant it plans to build will be the company’s next electric Cybertruck pickup truck, as well as one to build its Model Y SUV. Tesla chose a location in Travis County for the
Tesla says its new plant it plans to build will make the company’s next electric Cybertruck pickup truck, as well as one to build its Model Y SUV. Tesla chose a location in Travis County for the plant. (Tesla /TNS)
Tesla says its new plant it plans to build will make the company’s next electric Cybertruck pickup truck, as well as one to build its Model Y SUV. Tesla chose a location in Travis County for the
With Tesla’s announcement of plans to build a production facility in central Texas, and with the fact that the company’s headquarters will also arrive, many citizens of that state rejoice. Not me.
Tesla is the worst. What about Elon Musk, Tesla’s founder and CEO? He’s awful too. My hatred for the company and the CEO burns on me with the warmth of the 10,000 SpaceX rocket launches.
My reasons for rage from the deep to the insignificant. I’ll list them in that order. Tesla, how do I hate you? Let me count the media.
Reason 1: Public gift for companies
Del Valle ISD filed $46.4 million in tax breaks for the privilege of Tesla’s new production facility in its neighborhood. Travis County Commissioners approved other benefits, totaling $60 million. Will the state Texas Business Fund be far from providing a public subsidy to personal businesses?
In return, Tesla plans to employ 5,000 people for an average salary of $35,000 a year. In other words, a poverty wage for a circle of relatives of six.
And Gov. Greg Abbott and the Texas leaders celebrated?
You see, it’s already clear that Tesla moved here exactly because they can only pay their workers $35,000 a year! We don’t have to pay Tesla another $60 million in government subsidies for what they had already planned to do.
And why does an executive director with an estimated net worth of $70 billion request to withdraw cash from Texas public school academics for the back line of his company? Because he can. Because there is no more dishonor in complex capitalism as practiced through Elon Musk.
Thank you, Mr. Musk! Please, sir, can I have one?
Reason 2: Vehicle grants
There is a furious debate about whether Tesla is beneficial in the coming year or whether it’s still wasting money. What is debatable is that the only way the company can claim a profit is for other automakers to be forced to buy “regulatory credits” from Tesla. Because other corporations produce enough electric cars, in accordance with federal regulations.
Tesla reserved $782 million in bills from classic automakers in the early part of the year. Tesla reported a profit of $16 million in the first quarter and $104 million in the second quarter, would record a loss without the “regulatory credits” paid through its competitors.
To date, Tesla’s entire business style is based on government subsidies. From the $1.2 billion to build a battery plant in Reno to $7,500 auto acquisition credits, which fortunately now have now been cut for Tesla. Without them, the business would never have been profitable. Can we avoid publicly subsidizing a $270 billion market capitalization company, please? Again, everything related to capitalism is damaged here.
Reason 3: Accounting traverses
David Einhorn of Greenlight Capital wrote a scathing investigation into Tesla’s accounting practices in his quarterly August 4 investment letter.
Nearly accusing the company and Musk of fraud, Einhorn wrote: “We wonder whether TSLA’s accounting, which seems to correspond to the creation of regulatory credits through the sale of cars, the transfer of those credits to a counterparty, or the payment of those credits. Array complies with GAAP with accounting. »
In the end, Einhorn believes That Tesla is cheating to show a technical benefit for 4 consecutive quarters, which would allow the company to be included in the S-P 500 index. “Because of what appears to be a natural abuse of accounting rules,” Einhorn wrote, “TSLA has now declared benefits to make it technically eligible (for the inclusion of the S-P 500).”
Einhorn then predicted Tesla’s long-term collapse, in the same spirit as the catastrophic WireCard (WDI) fraud after its recent listing on the German stock market (DAX). “As with WDI and the DAX, we expect TSLA’s parable to end around the speculated inclusion in the prestigious S-P 500 index.”
Reason 4: Share valuation
I made precisely a “call to the market”, looking at an individual action in my six years of writing a column in a newspaper. I wrote about Tesla in 2015 as a company: “I’m pretty sure it’ll be dead in five years, despite its $25 billion market capitalization.”
haha. The joke is mine because I reviewed that call in January 2020, to point out that its expansion with a market capitalization of $100 billion is even more ridiculous.
Barely a year later, the name became ridiculous. The company now has $270 billion. Keep in mind that this has almost tripled amid a global recession and a pandemic. The lesson, as always: I’m an idiot. Ardo with a specific hatred for Tesla, especially for ridiculing my abundant investment skills and my vision for business.
Reason 5: tweets
Musk uses Twitter all day to lie, intimidate, distract and constantly.
When he was criticized for his shooting in the press about young people trapped in a cave in Thailand in 2018, Musk responded to the Twitter complaint with an unfounded slander: “Sorry, kid, you asked.
In the face of the complaint highlighting Tesla’s precarious monetary scenario in 2018, Musk lied about an agreement to take personal tesla and tweeted, “I’m taking Tesla’s personal at $420. Guaranteed financing”.
Lying, intimidating and distracting on Twitter doesn’t make Musk exclusive among world leaders in 2020. But Musk’s taste reminds me of the seller’s insatiable narcissism of lying, intimidating and distracting that he has a vital task to do and yet chooses to dedicate his day to Twitter.
Reason 6: Cars
I hate cars. I perceive — other people like Teslas. They look great and are fast approaching. Using my non-public finance hat, I did my best to convince my children (and anyone else who listens to them) that paying a premium for a cool car makes as much monetary sense as paying a premium for a cold wash device and dishwasher. They’re only depreciating steel and plastic customer products. (To be clear, I mean cars and appliances, not my children).
Cars are a misuse of your money. They shouldn’t be great. Mr. Harumph. Am I petty? Yes, damn it. I’m so Tom Petty right now that I’m in free fall and I’m not going to back down.
Michael Taylor is a columnist for the San Antonio Express-News and “Financial Rules for New College Graduates.”
[email protected] twitter.com/michael_taylor