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Musk only needs half the time given to pay loan

Electric vehicle maker Tesla received a loan from the U.S. Department of Energy to the tune of $465 million. The automaker has until the end of the decade pay off the loan, but CEO Elon Musk believes that Tesla will be able to pay off the entire loan in half the time.

The loan was granted to Tesla under the Advanced Technology Vehicles Manufacturing loan program and allowed the automaker to retool an automotive manufacturing plant in California. Tesla uses that plant to produce the Model S electric vehicle, and has recently stated that it will be able to produce 20,000 of the sedans during 2013.


President Obama and Elon Musk

Despite seeing a significant increase in revenue, the automaker lost nearly $90 million during the last quarter and lost approximately $400 million during all of 2012. This news sent Tesla shares downward last week.
 
Musk also got personally involved in a dustup with the New York Times over what he saw as an unfair and dishonest review of the Model S. According to Musk, the bad publicity cost the company $100 million.

Source: Technology Review



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RE: Great photo
By Reclaimer77 on 2/28/2013 4:10:11 PM , Rating: 2
quote:
One job of the gov't is to maximize economic growth given the current conditions.


No, that is not a "job" of the Government. What-so-ever. No wonder you are the way you are.

The Government cannot grow the economy. The best it can do is get out of the way.

quote:
Why shouldn't the gov't be a last resort for investing idle capital


Idle capital? We're trillions in debt.


RE: Great photo
By Solandri on 2/28/2013 5:10:31 PM , Rating: 1
quote:
The Government cannot grow the economy. The best it can do is get out of the way.

There are a handful of situations where if individuals each act in their own best interests, it results in a suboptimal or even worst possible outcome for everyone.
http://en.wikipedia.org/wiki/Tragedy_of_the_common...

In those cases, yes the government can help grow the economy. The trick is in recognizing when you do and don't have one of these situations. Unfortunately some people falsely believe no such situations exist. While others falsely believe the mere existence of such situations means the opposite situation does not exist (i.e. "the free market doesn't work").

tl;dr - Sometimes government regulation is good for the economy, sometimes it is bad. The best outcome is achieved when you allow free market to do its thing when appropriate, and allow government regulation when appropriate.


RE: Great photo
By Reclaimer77 on 2/28/2013 6:01:50 PM , Rating: 2
I actually agree with you. However this isn't a debate about Government regulations, as much as it is about the Government playing investment capitalist with a side of Cronyism, with redistributed wealth.

Actually is really simple. Mint is in favor of Tesla, so he's trying to make an argument that the loans are good for all of us. Which is absurd.

If Mint and everyone with his mindset had sent Musk a check for $25 or so bucks, we wouldn't be having this discussion. But the problem with our society is that people rather wield Government power like a blunt instrument. They prefer the Government to take money from others and spend it to the things they care about. Except around half the people in this country of voting age pay no Federal income taxes, so why should they care about Government spending or tax policy?

I'm guessing Mint falls under this bracket too.


RE: Great photo
By Mint on 2/28/2013 6:47:22 PM , Rating: 2
quote:
If Mint and everyone with his mindset had sent Musk a check for $25 or so bucks, we wouldn't be having this discussion
Wrong. That was already tried, and he only raised ~$200M. It's called an IPO.

The gov't loan gave him the rest of what was needed to get moving. Only then could Tesla convince people to invest the next billion.
quote:
Mint is in favor of Tesla, so he's trying to make an argument that the loans are good for all of us
I am in favor of the public to vote for whatever spending they think is worthwhile, just like you (and I, incidentally) are in favor of investments in nuclear power, which the free market has done an awful job of investing in by itself. I don't hear you asking for Obama to stop those loan guarantees, which are finally spurring at least a little progress.


RE: Great photo
By Reclaimer77 on 2/28/2013 6:54:42 PM , Rating: 2
quote:
Wrong. That was already tried, and he only raised ~$200M. It's called an IPO.


You're actually making my point for me. Hello!!!

So if Tesla wasn't important enough for you (the figurative you) to invest in, don't turn around and then claim the Government needs to pick up the slack! That is not the purpose of this Government. It's why we're in the mess we're in today.

As far as you comparing nuclear power generation, a public service/good, to an electric car for the rich....WOW!


RE: Great photo
By Mint on 2/28/2013 7:34:43 PM , Rating: 2
quote:
So if Tesla wasn't important enough for you (the figurative you) to invest in, don't turn around and then claim the Government needs to pick up the slack!
I'm not turning around from anywhere. It is important enough, which is why it's now worth $4B. However, it was stuck in a catch-22: people don't invest if they're not sure Musk can pull it off, and Musk can't show them that he can pull it off without people investing.
quote:
It's why we're in the mess we're in today.
LOL I'd love to hear the bunk logic you used to conclude that...
quote:
As far as you comparing nuclear power generation, a public service/good, to an electric car for the rich....WOW!
This is the myopia I was referring to before. I drove a BMW as a grad student because somebody else bought it 6 years before me and I got it at 1/5th the MSRP. 10 years from now a family will be driving a Model S built today and they'll be saving >$2k/yr on gas.

When Panasonic started making big screen plasma TVs, they cost $8000. Now they cost <$800. An industry has to start somewhere.


RE: Great photo
By Pirks on 2/28/2013 8:42:58 PM , Rating: 2
quote:
industry has to start somewhere
Reclaimer is too dumb to understand such simple things


RE: Great photo
By Pirks on 2/28/2013 8:38:44 PM , Rating: 2
quote:
As far as you comparing nuclear power generation, a public service/good, to an electric car for the rich
Cars were for the rich a while ago, same with electric cars now. All smart people understand that, but rednecks don't need to apply.


RE: Great photo
By Mint on 2/28/2013 5:34:34 PM , Rating: 2
quote:
No, that is not a "job" of the Government. What-so-ever. No wonder you are the way you are.
Yeah you go ahead and tell that to the American people who had the economy as their #1 issue on both sides of the isle.

Just move to Somalia already and live in your minimal government paradise.

quote:
The Government cannot grow the economy. The best it can do is get out of the way.
You're living in the past. Every modern gov't that tried to get out of the way during this recession saw its economy shrink and make the problem worse.
quote:
Idle capital? We're trillions in debt.
I guess the tea party has brainwashed any semblance of economic logic from your head. The two have nothing to do with each other.

Educate yourself on excess reserves.


RE: Great photo
By Reclaimer77 on 2/28/2013 5:54:34 PM , Rating: 2
quote:
Yeah you go ahead and tell that to the American people who had the economy as their #1 issue on both sides of the isle.


Yeah it was such a big issue, they re-elected the guy who made the economy worst and continues to! They identified the problem, but utterly failed in choosing the solution.

quote:
You're living in the past. Every modern gov't that tried to get out of the way during this recession saw its economy shrink and make the problem worse.


That's absolutely false. We're living proof that you cannot spend your way out of a bad economy. Did the stimulus work? Has anything worked? If you were right, the past 5 years of record spending would equal record prosperity and economic growth. Hello?

But there is good news, the GDP actually grew last quarter. By a tenth of a percent. I guess that's an affirmation, in your mind, of the big Gov approach you're shoveling.

quote:
Just move to Somalia already and live in your minimal government paradise.


That is a petty Red Herring, and doesn't come close to being a reasonable retort.


RE: Great photo
By Pirks on 2/28/2013 7:06:46 PM , Rating: 1
quote:
Did the stimulus work? Has anything worked? If you were right, the past 5 years of record spending would equal record prosperity and economic growth. Hello?
You are illiterate and you have no idea how the inaction of the federal government worked out real nice in 1929. People like you in the government back then ran the country into near total economy destruction and chaos. Obama saved it from total destruction and chaos by his urgent stimulus money. Time to say Hello to your dead brain, troll :)


RE: Great photo
By Mint on 2/28/2013 7:07:13 PM , Rating: 2
quote:
Yeah it was such a big issue, they re-elected the guy who made the economy worst
Yeah, you go ahead and believe that. Not one person who thought Obama made the economy worse voted for him.
quote:
That's absolutely false. We're living proof that you cannot spend your way out of a bad economy. Did the stimulus work? Has anything worked? If you were right, the past 5 years of record spending would equal record prosperity and economic growth.
Why are you so dense? If a man bailing water keeps his boat afloat, would you say the bailing isn't working because his ship ran much better when he left the dock and wasn't bailing?
quote:
But there is good news, the GDP actually grew last quarter. By a tenth of a percent. I guess that's an affirmation, in your mind, of the big Gov approach you're shoveling.
Once AGAIN you're stuck living in the past. This economic environment is nothing like whatever time period you're comparing to in your head.


RE: Great photo
By Reclaimer77 on 2/28/2013 7:14:17 PM , Rating: 2
Okay I apparently cannot have a fiscal debate with you, because you've created your own economic theory where traditional metrics used to measure economic activity and health are "things of the past" now. Arbitrarily, because you said so. GDP is a thing of the past? That's...that's brilliant.

Good luck shoveling that when our economy collapses...


RE: Great photo
By Mint on 2/28/2013 7:44:59 PM , Rating: 2
If I said $2 gas is a thing of the past, that doesn't mean I think the traditional metric of dollars is a thing of the past, genius.

But if you want to show off your strawman construction ability, go ahead...


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