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How Tesla uses cash from the LV casinos to boost its bottom line

Discussion in 'Mountain/Southwest' started by Elon'sCousin, Jun 24, 2018.

  1. Elon'sCousin

    Elon'sCousin Member

    Joined:
    Feb 23, 2016
    Messages:
    9
    Location:
    San Gabriel, Ca
    From the LA Times this morning:: "
    Since 2015, Tesla has boosted its bottom line by selling tax credits to casinos such as the MGM Grand.

    The casinos use the credits, purchased at a discount, to lower the gambling taxes they pay the state. Tesla uses the proceeds to ease its losses or increase its profit. Musk told investors on June 5 that “it’s looking like” the company will be profitable later this year.

    So far, Tesla has sold $131 million in credits to casinos and has booked a total of $163 million in anticipation of more sales soon."

    It seems to me that this is a smart business strategy.. Does anyone else have an opinion?
    The link to the article is here: http://www.latimes.com/business/autos/la-fi-hy-tesla-nevada-casino-credits-20180624-story.html

    The article may be behind a pay wall for those who do not subscribe to the LA Times.
     
  2. suwaneedad

    suwaneedad Member

    Joined:
    Dec 11, 2016
    Messages:
    619
    Location:
    Atlanta
    This practice is exceptionally common. The solar industry in the US relies upon tax credits being sold by those who don't need them and bought by those who do. In Georgia, the movie industry has gone from zero to huge inside of a decade because of new state laws that provide tax credits to production companies, which are then sold to the Coca-Colas of the world. Cutting through the nonsense, they're all just ways that various US governments incent development of a given industry, technology, or business location (Reno/NV/Giga)...picking winners or losers. Ain't 'capitalism' grand.
     
    • Informative x 1
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