CarbAppreciator
Member
...A reusable rocket is a game changing idea. An economically mass produced electric car/ solar panels is a game changing idea, in other words these being a reality is a huge change...Which one of Musk's ventures do you think represents game-changing ideas or technology? Electric cars were built back in the 1920s and were not pursued due to energy costs.
The example of France's subsidies for Ariane5 does not necessarily falsify the point that Musk gets taxpayer money for pushing non-competitive ideas. Ariane5 is a lot closer to a government project than Musk's ventures, which are supposed to turn profit. I don't think the goal of Ariane5 (if at all) is primarily profit.
I don't know that I agree with the decidedly Malthusian point of mr_mercer completely but his points on the revolutions in the Middle East and Musks ventures are hard to argue with. Did you know that at least 20% of Tesla's stock is shorted?
https://www.cnbc.com/2018/03/26/traders-are-betting-heavily-against-teslas-junk-bonds.html
So, Musk seems to have these interesting (but hardly groundbreaking) ideas to play with, but giving him government money before the feasibility of these ideas has been shown is a bit like bailing out the US automakers in the 2008/2009 crisis knowing rather well that the companies are really not competitive and incapable of turning profit without government intervention. I don't have a problem with government-funded projects for advanced science...but those should stay in the government (i.e. DARPA) and then licensed out to private companies if needed. This corrupt government partnership with for-profit companies with not much accountability to anybody is historically not backed up by much success. If Elon thinks his ideas are really good he should be able to raise all the money he needs from private investors. After he proves they are viable then I am all for government offering subsidies to support homegrown technological innovation stemming from his ideas.
Ariane5 is a gov't ripoff, a product of nationalism, a politician's selfish fantasy, still a pretty good rocket, but nowhere close to being an economical distribution of resources, hence the massive subsidies to make it actually get contracts to fly. In contrast, the Falcon 9 is far and away the most economical launch vehicle ever made in terms of $-per-lb to orbit, and now of course the falcon heavy will make all sorts of new space missions possible, hard to argue witht the results...
Stock prices are not a reflection of reality anymore unfortunately, yes tesla is heavily leveraged, but it already has all but achieved its maturity into a major manufacturer, in one of the most competetive industries in one of the most harshest countries to do business w/ regards to corporate taxes/regulations. A market crash woud not threaten tesla, it already exists in an economical form, no matter what the ownership structure is, the facotry will keep humming along.