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Here you go: https://www.latimes.com/business/la-fi-hy-musk-subsidies-20150531-story.html https://www.latimes.com/business/la-fi-hy-musk-subsidies-201...

slownews45 5y ago
For those who don't click through... There's really no detailed notes on any SpaceX subsidies. The article talkes about $1.3B Nevada provided Tesla for a battery factory in Nevada. Digging a bit deeper, you find that these are mostly tax incentives commonly used by all auto mfgs and these are not actually cash payments. Again, tesla is not unique in getting support from the govt (and likely has received relatively little over its lifetime compared to others). From 2012 https://www.nytimes.com/2012/12/02/us/how-local-taxpayers-bankroll-corporations.html https://www.nytimes.com/2012/12/02/us/how-local-taxpayers-ba... From 2008: $80B bailout (not tax incentives - cash). Ridiculous FIFO inventory valuation methods allowed for tax purposes. etc. The actual incentives here are things like 10 year waiver of property taxes. That's not super uncommon if you built out somewhere that is less developed, which gigafactory nevada did. https://en.wikipedia.org/wiki/Giga_Nevada#/media/File:Tesla_Gigafactory_1_-_December_2019.jpg https://en.wikipedia.org/wiki/Giga_Nevada#/media/File:Tesla_... Usually corp does have to pay some user fees and covers much more onsite stuff than you would see in an urban area for example (ie, Tesla would generally need to run onsite fire protection management vs Nevada building a fire station next to factory). The idea is that after 10 years you've helped build a manufacturing base, the land and area is (much) more valuable, and long run your tax base in significantly increased. But since nothing much is there to start with you don't charge someone that much to develop it (you may even pay them in some cases though nevada may not have). Note that businesses take this same approach with each other frequently. Intel wouldn't help Apple with chip for first iphone, Samsung (ARM) did. Was a good investment for ARM.
- luffapi 5y ago
  You keep misrepresenting me and arguing with a straw man. I did not say Musk is alone in receiving corporate welfare, in fact I said there are many others receiving it as well. My point is that Musk is an example of a hyper connected individual who is able to get special handouts from the government.

slownews45 5y ago

For those who don't click through... There's really no detailed notes on any SpaceX subsidies. The article talkes about $1.3B Nevada provided Tesla for a battery factory in Nevada. Digging a bit deeper, you find that these are mostly tax incentives commonly used by all auto mfgs and these are not actually cash payments. Again, tesla is not unique in getting support from the govt (and likely has received relatively little over its lifetime compared to others). From 2012 https://www.nytimes.com/2012/12/02/us/how-local-taxpayers-bankroll-corporations.html https://www.nytimes.com/2012/12/02/us/how-local-taxpayers-ba... From 2008: $80B bailout (not tax incentives - cash). Ridiculous FIFO inventory valuation methods allowed for tax purposes. etc. The actual incentives here are things like 10 year waiver of property taxes. That's not super uncommon if you built out somewhere that is less developed, which gigafactory nevada did. https://en.wikipedia.org/wiki/Giga_Nevada#/media/File:Tesla_Gigafactory_1_-_December_2019.jpg https://en.wikipedia.org/wiki/Giga_Nevada#/media/File:Tesla_... Usually corp does have to pay some user fees and covers much more onsite stuff than you would see in an urban area for example (ie, Tesla would generally need to run onsite fire protection management vs Nevada building a fire station next to factory). The idea is that after 10 years you've helped build a manufacturing base, the land and area is (much) more valuable, and long run your tax base in significantly increased. But since nothing much is there to start with you don't charge someone that much to develop it (you may even pay them in some cases though nevada may not have). Note that businesses take this same approach with each other frequently. Intel wouldn't help Apple with chip for first iphone, Samsung (ARM) did. Was a good investment for ARM.

luffapi 5y ago
You keep misrepresenting me and arguing with a straw man. I did not say Musk is alone in receiving corporate welfare, in fact I said there are many others receiving it as well. My point is that Musk is an example of a hyper connected individual who is able to get special handouts from the government.