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IIRC, - Tesla re-paid a 495 million government loan 10 years early.[0] - Musk personally invested $100 Million in SpaceX - Musk personally invested $275 Mill

IIRC, - Tesla re-paid a 495 million government loan 10 years early.[0] - Musk personally invested $100 Million in SpaceX - Musk personally invested $275 Million in Tesla[1] [0]http://money.cnn.com/2013/05/22/autos/tesla-loan-repayment/ http://money.cnn.com/2013/05/22/autos/tesla-loan-repayment/ [1]http://www.businessinsider.com/elon-musk-borrows-150-million-to-buy-tesla-2013-5 http://www.businessinsider.com/elon-musk-borrows-150-million... I don't consider Musk to be mooching off of the government. He's put everything on the line.

hackuser 11y ago
> He's put everything on the line. I don't think that justifies it. Every business has investors. Some also receive large amounts of government subsidy. Per the article, some of Musk's businesses are in the latter category, for good or ill. (I won't try to define or debate "mooching".)
jusben1369 11y ago
Well Elon would be more inclined to invest his own money the less risk that existed. Government subsidies definitely reduce risk. (Just pointing out that this doesn't refute the articles claim)
calibraxis 11y ago
The entreprenurial government takes risks, and once in a while succeeds so wildly that the company can pay off the loans quickly. "Tesla’s management knew that if they couldn’t get the government’s money at 3 or 4 percent interest, their next cheapest source of capital would cost 10 times more, a whopping 30 to 40 percent annually. [...] And if the government had wanted to bargain like a real venture capitalist, Tesla’s desperate need for cash gave the feds the power to demand options on half the company’s stock, or more." (http://www.slate.com/articles/business/moneybox/2013/05/tesla_is_worse_than_solyndra_how_the_u_s_government_bungled_its_investment.html http://www.slate.com/articles/business/moneybox/2013/05/tesl...) Important to deflate startup myths: corporate moochers love how government welfare "socializes the risks and privatizes the rewards." (http://www.project-syndicate.org/commentary/government-investment-innovation-by-mariana-mazzucato-2015-04 http://www.project-syndicate.org/commentary/government-inves...)

hackuser 11y ago

> He's put everything on the line. I don't think that justifies it. Every business has investors. Some also receive large amounts of government subsidy. Per the article, some of Musk's businesses are in the latter category, for good or ill. (I won't try to define or debate "mooching".)

jusben1369 11y ago

Well Elon would be more inclined to invest his own money the less risk that existed. Government subsidies definitely reduce risk. (Just pointing out that this doesn't refute the articles claim)

calibraxis 11y ago

The entreprenurial government takes risks, and once in a while succeeds so wildly that the company can pay off the loans quickly. "Tesla’s management knew that if they couldn’t get the government’s money at 3 or 4 percent interest, their next cheapest source of capital would cost 10 times more, a whopping 30 to 40 percent annually. [...] And if the government had wanted to bargain like a real venture capitalist, Tesla’s desperate need for cash gave the feds the power to demand options on half the company’s stock, or more." (http://www.slate.com/articles/business/moneybox/2013/05/tesla_is_worse_than_solyndra_how_the_u_s_government_bungled_its_investment.html http://www.slate.com/articles/business/moneybox/2013/05/tesl...) Important to deflate startup myths: corporate moochers love how government welfare "socializes the risks and privatizes the rewards." (http://www.project-syndicate.org/commentary/government-investment-innovation-by-mariana-mazzucato-2015-04 http://www.project-syndicate.org/commentary/government-inves...)