re: Tesla's gigafactory is a cool idea but not really sustainable

quote:

---

Yeah, SpaceX is such an obvious long-con. Just a billionaire moocher! Sad!

---

quote:

---

SpaceX, Musk's rocket company, got $20 million in economic development subsidies from Texas to construct a launch facility in the state.

---

quote:

---

This, however, is separate from incentives that SpaceX won totaling more than $5.5 billion in government contracts from NASA and the U.S. Air Force.

---

quote:

---

Elon Musk funded his massive business empire with $4.9 billion in government subsidies leaving the U.S. taxpayer to shoulder much of the cost

---

quote:

---

"He definitely goes where there is government money," said Dan Dolev, an analyst at Jefferies Equity Research. "That's a great strategy, but the government will cut you off one day."

---

quote:

---

But public subsidies for Musk's companies stand out both for the amount, relative to the size of the companies, and for their dependence on them. "Government support is a theme of all three of these companies, and without it none of them would be around," said Mark Spiegel, a hedge fund manager for Stanphyl Capital Partners

---

quote:

---

Included in the local subsidies is a 15-year property tax break from the local school district worth $3.1 million to SpaceX.

---

quote:

---

In a 2008 blog post, Musk laid out a plan: After the sports car, Tesla would produce a sedan costing "half the $89k price point of the Tesla Roadster and the third model will be even more affordable." In fact, the second model now typically sells for $100,000, and the much-delayed third model, the Model X sport utility, is expected to sell for a similar price. Timing on a less expensive model — maybe $35,000 or $40,000, after subsidies — remains uncertain.

---