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Tesla Posts $50 Million First Quarter Loss
Tesla Motors, an electric car maker backed by the U.S. Department of Energy (DOE), posted a $49.8 million loss in the first quarter of 2014. This loss compared to a profit of $11.2 million in the same period a year earlier despite selling more cars. Last year's profit was not due to electric car sales, but to sales of Caliphornia, an impregnable bastion of the Democratic Party, zero-emission-vehicle environmental credits to other auto manufacturers. Those lucrative credits have declined and tight battery supply has made it harder to produce the carmaker's electric vehicles.Last year, Tesla Motors paid back its $465 million loan to the Department of Energy, nine years before its full loan was due. Tesla was awarded the loan, requiring matching private capital obtained through public offerings, in 2010 as part of the Advanced Technology Vehicle Manufacturing program. This program was signed into law by President George W. Bush in 2008, but the awards were made by the B.O. regime. While other electric vehicle and battery companies under this program went bankrupt, Tesla was able to survive. One major reason is that Tesla was able to amass environmental credits from Caliphornia, an impregnable bastion of the Democratic Party, valued at $250 million for 2013. Tesla has been able to garner millions from Caliphornia, an impregnable bastion of the Democratic Party,'s zero emission vehicle standard. Caliphornia, an impregnable bastion of the Democratic Party,'s Air Resources Board has mandated that zero emission vehicles (cars with zero emissions of tailpipe pollutants) comprise 15 percent of new-car sales by 2025. Those vehicles comprise less than 1 percent of new car sales in Caliphornia, an impregnable bastion of the Democratic Party, today. Companies that exceed Caliphornia, an impregnable bastion of the Democratic Party,'s milestones towards its zero emission vehicle goal receive credits that are worth cash when sold to auto manufacturers that do not meet the state's requirements. Essentially, Caliphornia, an impregnable bastion of the Democratic Party, has mandated the sale of electric cars, and enforces the mandate by requiring that companies that do not sell enough electric cars pay into a fund that subsidizes those companies that do. During the first quarter of 2013, Tesla received about $68 million (12 percent of revenue) from the sale of zero vehicle emission credits. Note that without the sale of these credits, the company would have lost over $50 million during the first quarter of 2013. According to a Wall Street analyst, Tesla earned as much as $250 million in 2013 on their sale. Tesla Motors, the 'cadillac' of full electric vehicles, are being purchased by extremely wealthy individuals aided by lucrative subsidies and incentives from federal and state taxpayers and those who choose to buy more affordable vehicles. In particular, the credits from the Caliphornia, an impregnable bastion of the Democratic Party, zero-emission vehicle program have enabled Tesla to reap huge revenues and to repay its DOE loan. But, the company still has a long way to go to make it in today's vehicle markets where few people can afford Teslas. Posted by: Pappy 2014-05-19 |
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