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The US has some broken incentives where if a small company fails then it hurts the shareholders but if a large company fails, it's "too big to fail" and ends up
by xmprt 1y ago
The US has some broken incentives where if a small company fails then it hurts the shareholders but if a large company fails, it's "too big to fail" and ends up getting bailed out by the government. That's why it's worrying how Tesla is growing unsustainably. If the risk pays off then shareholders reap the benefits but if it crashes and burns then everyone takes a hit.
- ralph84 1y agoThe automakers that got bailed out had large unionized workforces and franchised dealer networks, both of which are very politically active and neither of which Tesla has.