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California grants Tesla $34.7 million tax break to boost production - Dec 17, 2013

Discussion in 'Tesla, Inc.' started by SwedishAdvocate, Dec 18, 2013.

  1. artsci

    artsci Sponsor

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    #21 artsci, Dec 21, 2013
    Last edited: Dec 22, 2013
    If I remember economics 101, it's the lack of demand that kills jobs. And that's not a problem for Tesla, which can't produce enough cars to meet demand. The tax break is intended to help Tesla boost supply.
     
  2. Benz

    Benz Active Member

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    Any idea/guess?

    Somewhere in Q3 2014?
     
  3. brianman

    brianman Burrito Founder

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    Cost influences price, price influences demand. I think Doug was speaking generally, not to Tesla specifically.
     
  4. Chickenlittle

    Chickenlittle Active Member

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    I don't but assume the timeline will become clear. I am concerned about what the depletion in free cash will do. Of course you have to spend money to grow but they have managed to grow without depleting free cash. I do not know the details/terms of purchase but this most likely to deplete cash and provide fodder for doubters
     
  5. Krugerrand

    Krugerrand Well-Known Member

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    I would assume that they would try to time everything so that the new production equipment is online in time for a) Model X AND b) the lifting of battery constraints - that would seem to make the most sense; if we're guessing and all.
     
  6. Benz

    Benz Active Member

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    I think that the combination of these two news items is a very strong sign that Tesla Motors is right on track in achieving its goals:
    1 - The news item of the new 1.8 billion battery cells agreement between Tesla Motors and Panasonic.
    2 - The news item of the 415 million investment in order to increase production capacity at the Tesla Motors factory in Fremont.

    I think that 2014 will be a great year for Tesla Motors.

    The global demand and the global deliveries for the Tesla Model S and the Tesla Model X will keep on growing every year.

    My concervative guess would be:
    2014 - 35.000 Tesla Model S and 5.000 Tesla Model X
    2015 - 40.000 Tesla Model S and 20.000 Tesla Model X
    2016 - 45.000 Tesla Model S and 25.000 Tesla Model X
    2017 - 50.000 Tesla Model S and 30.000 Tesla Model X
     
  7. omgwtfbyobbq

    omgwtfbyobbq Active Member

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    Tax breaks are fine, as long as the locality doesn't give away the farm.

    Or worse, give away the farm and get stuck with a giant headache.

    http://www.epa.gov/r02earth/superfund/npl/gmmassena/index.html

    IMO any tax breaks need some sort of guarantee to be amortized.

    Without those contractual guarantees, I wouldn't give a company a cent.

    There was something similar near my mom's place in Moreno Valley.

    In short, Skechers gave hundreds of thousands to local government, and were rewarded with an expanded free trade zone and a nice new advanced facility. The region was penalized with fewer tax revenues and fewer jobs. Skechers and corrupt politicians 1, everyone else, -1.

    http://books.google.com/books?id=Bdz5eG3b2nwC&pg=PA732&lpg=PA732&dq=Inland+Foreign+Trade+Zone+244&source=bl&ots=ykvmmxL-qx&sig=IU-yHS4K1BP4uJSMywpK5DO4wCs&hl=en&sa=X&ei=VnG7UpDnGdfdoATWi4HwBg&ved=0CGcQ6AEwBw#v=onepage&q=Inland%20Foreign%20Trade%20Zone%20244&f=false

    http://www.pe.com/business/business-headlines/20120201-moreno-valley-skechers-warehouse-has-caused-net-job-loss.ece

    http://www.pe.com/local-news/reports/moreno-valley-investigation/moreno-valley-investigation-headlines/20130920-moreno-valley-fppc-fines-skechers-for-not-reporting-contributions-on-time.ece
     

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