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

[artsci]

That tax shouldn't exist in the first place, unless the goal is to kill jobs.

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.

 

[Benz]

Anyone have a WAG on how long it might take to upgrade the factory after the new production equipment is purchased?

Any idea/guess?

Somewhere in Q3 2014?

 

[brianman]

If I recommend 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 boot supply.

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

 

[Chickenlittle]

Any idea/guess?

Somewhere in Q3 2014?

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

 

[Krugerrand]

Any idea/guess?

Somewhere in Q3 2014?

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.

 

[Benz]

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

 

[omgwtfbyobbq]

At the very least it shifts job locations.

Has an auto plant been built in the last 30 years without a long list of tax breaks?

Don't offer them they don't get built in your location.

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=Bd...epage&q=Inland Foreign Trade Zone 244&f=false

http://www.pe.com/business/business...kechers-warehouse-has-caused-net-job-loss.ece

http://www.pe.com/local-news/report...s-for-not-reporting-contributions-on-time.ece