Tesla’s long strange taxpayer-subsidized trip could end in bankruptcy

Tesla is abandoning its dealerships and slashing prices to survive after its monthly sales tanked by 77 percent since the December 31 cut in federal all-electric car subsidies. A review of public records show that Tesla’s $1 million investment in Washington D.C. lobbyists last year produced over $280 million in U.S. taxpayer-funded electric vehicle subsidies, including a $7,500 tax credit on every car it sold. But with Tesla reaching 200,000-unit limit, the federal tax credit fell to $3,750 as of January 1, will drop to $1,875 on July 1, and then be phased out as of December 31, 2019. Tesla has received $1.3 billion of tax incentives from the State of Nevada for its battery Giga-Factory and $750 million in grants from the State of New York for its solar factory. Forty-two states also offer cash incentives including a high of $5,000 in Colorado and $2,500 in California. But subsidies in 10 states are set to expire on April 1, 2019. It appeared that Tesla might be able to...(Read Full Post)
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