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Musk was a visionary, but a visionary without funding is nothing. His funding for Tesla came from the US taxpayers in the amount of $451 million. This turns o

by z9znz 4y ago

Musk was a visionary, but a visionary without funding is nothing. His funding for Tesla came from the US taxpayers in the amount of $451 million. This turns out to have been a good investment for the US and Tesla and arguably the world in general, because it proved the capability of electric cars (as well as their market desirability). But make no mistake, without that investment and the success of Tesla, Musk would not have a fraction of the "success" he appears to have now. SpaceX is something to appreciate as well, but as they say - it takes money to make money. Building a space company is even more crazy than an electric car company. So to do that, you need a TON of money or a lot of powerful investors (or both). Musk should have sat quietly with his successes in Tesla and SpaceX, but instead it seems he has bighead syndrome. He believes his wealth and success means that he is an expert in everything.

cudgy 4y ago
> This turns out to have been a good investment for the US and Tesla and arguably the world in general, because it proved the capability of electric cars (as well as their market desirability). Did the taxpayers get shares for this investment? If not, I fail to see this as an investment … it would be a gift to Tesla shareholders.
panick21_ 4y ago
This is a highly inaccurate picture. > His funding for Tesla came from the US taxpayers in the amount of $451 million. This is wrong. Tesla was founded in 2003. Around 2009 they received a loan from the DoE for $451 million to build the Model S but this money they only started getting around 2011 if I remember correctly. By that point Musk had already put in 90million of his own money plus some more money from friends. The government just happened to have a program for this and Tesla took advantage. Tesla re-paid this loan in full ahead of schedule, so the DoE made a nice profit on this. And btw, the same program made much bigger loans out for GM/Ford and they still have not paid it it back. > But make no mistake, without that investment and the success of Tesla, Musk would not have a fraction of the "success" he appears to have now. I don't think this is accurate. By that time Tesla had a number of funding option. It might have cost stock payers more or Tesla would have to pay more interest. Tesla might have been slowed down slightly but I don't think it would have changed as much as you suggest. > SpaceX is something to appreciate as well, but as they say - it takes money to make money. Building a space company is even more crazy than an electric car company. So to do that, you need a TON of money or a lot of powerful investors (or both). SpaceX was almost fully self funded. Musk initially wanted to invest 70 million $ but had to invest an additional 20 million $. He got some additional investment but not that much. Until the received the COTS program they had very little ability to raise cash. > Musk should have sat quietly with his successes in Tesla and SpaceX, but instead it seems he has bighead syndrome. He believes his wealth and success means that he is an expert in everything. I think he believes he can become an expert in everything if he focuses on it.

by z9znz 4y ago

cudgy 4y ago

> This turns out to have been a good investment for the US and Tesla and arguably the world in general, because it proved the capability of electric cars (as well as their market desirability). Did the taxpayers get shares for this investment? If not, I fail to see this as an investment … it would be a gift to Tesla shareholders.

panick21_ 4y ago

This is a highly inaccurate picture. > His funding for Tesla came from the US taxpayers in the amount of $451 million. This is wrong. Tesla was founded in 2003. Around 2009 they received a loan from the DoE for $451 million to build the Model S but this money they only started getting around 2011 if I remember correctly. By that point Musk had already put in 90million of his own money plus some more money from friends. The government just happened to have a program for this and Tesla took advantage. Tesla re-paid this loan in full ahead of schedule, so the DoE made a nice profit on this. And btw, the same program made much bigger loans out for GM/Ford and they still have not paid it it back. > But make no mistake, without that investment and the success of Tesla, Musk would not have a fraction of the "success" he appears to have now. I don't think this is accurate. By that time Tesla had a number of funding option. It might have cost stock payers more or Tesla would have to pay more interest. Tesla might have been slowed down slightly but I don't think it would have changed as much as you suggest. > SpaceX is something to appreciate as well, but as they say - it takes money to make money. Building a space company is even more crazy than an electric car company. So to do that, you need a TON of money or a lot of powerful investors (or both). SpaceX was almost fully self funded. Musk initially wanted to invest 70 million $ but had to invest an additional 20 million $. He got some additional investment but not that much. Until the received the COTS program they had very little ability to raise cash. > Musk should have sat quietly with his successes in Tesla and SpaceX, but instead it seems he has bighead syndrome. He believes his wealth and success means that he is an expert in everything. I think he believes he can become an expert in everything if he focuses on it.