Tesla: The Dr. Jekyll and Mr. Hyde of Cronyism

On the one hand, Tesla feasts on government subsidies and giveaways, e.g. here.

On the other hand, Tesla fights against crony protections of incumbent businesses, e.g. here.

  • Mole1

    Sure, Tesla is taking advantage of various credits offered to encourage the use of electric cars. I can't see how this is very different from the home mortgage interest deduction.

  • Sam L.

    I'm guessing it's in the orders of magnitude, Mole.

  • obloodyhell

    I'm not going to blame Tesla for taking advantage of largess offered them, as long as they don't fight FOR largess, and, more critically, protective "largess", that's ok.

    The auto dealers themselves aren't that concerned with the competition from Tesla, they're concerned about the idea of WalMart -- or even worse, Amazon -- getting into the business using the foothold Tesla would represent.

    The real fact is, the whole dealership model is outmoded, and needs, like so many others, to be completely trashed.

  • markm

    The electric car credits apply to every one sold. The home mortgage deduction does not. For me, it was always far less than the standard deduction, which you have to give up to claim a home mortgage deduction. To gain from the home mortgage deduction, you either have to have assumed a mortgage you really can't afford, or be itemizing deductions anyway (nearly always because your income is too high; if you're itemizing because of sky-high medical bills, you've probably lost your house already).

  • Jack Nunn

    I take advantage of every tax deduction or other government provided benefit I can regardless of whether I agree with it or not. Should I shame a business for doing the same? As odloodyhell said, as long as they are not fighting FOR incentives I can't blame them for merely staying silent on incentives that help their company.

    The question is not what incentives they take advantage of but what they lobby and/or fight for.