DETROIT — The record pace of auto sales in the United States is slowing down, leaving investors increasingly bearish on auto stocks.
But there is one exception. Tesla, the electric-vehicle upstart, continues to surge.
On Monday, Tesla surpassed Ford Motor in market value for the first time and moved within striking distance of General Motors, starkly illustrating the growing gap in investors’ optimism over its future versus the prospects for the traditional carmakers from Detroit.
While G.M. and Ford may have strong profits and healthy balance sheets, Tesla offers something Wall Street loves much more: the potential for dramatic growth.
“Investors want something that is going to go up in orders of magnitude in six months to six years, and Tesla is that story,” said Karl Brauer, a senior editor at Kelley Blue Book. “Nobody thinks Ford or G.M. is going to do that.
No need to follow the link, take my word for it. Mystifyingly, this story didn't consume even one syllable about, oh, massive subsidies.
Among other privileges they enjoy, poor people pay rich people $10,000 a whack to drive off in Tesla Model S's.
Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.
But wait, there's more:
New York state is spending $750 million to build a solar panel factory in Buffalo for SolarCity. The San Mateo, Calif.-based company will lease the plant for $1 a year. It will not pay property taxes for a decade, which would otherwise total an estimated $260 million.
And even more beyond that. Corporatism is just a less frightening word for cancer.
And the NYT is a joke, except not at all funny. One can't help but wonder how those strong profits and healthy balance sheets would look if all the government dosh was to disappear. If they would still be hunky dory, then by all means stop abusing taxpayers on Tesla's behalf. On the other, and undoubtedly much stronger hand, if removing the trough from under Musk's nose was to comprehensively crater those profits and the sheets were suddenly capsizing, then one would think that would be worth knowing.
One would think.