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Tesla Motors to build Bay Area plant

Discussion in 'Political Discussion' started by otis p. driftwood, Jun 30, 2008.

  1. otis p. driftwood

    otis p. driftwood Experienced Starter w/First Big Contract

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    http://www.bizjournals.com/sanjose/stories/2008/06/30/daily16.html

    $100 million seems like a lot of tax free money.
     
  2. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Not sure how that incentive compares to others but it's great to see something good happening to my great state :)
     
  3. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Tesla uses the Lotus Elise chassis, a sweet handling cart the gas version weighs ~ 2,000 lbs.
     
  4. shmessy

    shmessy Maude Staff Member PatsFans.com Supporter

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    #75 Jersey

    It's all happening. We live in very exciting times.

    The tidal wave of innovation that is just about ready to be unleashed is incredible. Once the federal government decides not to be an obstacle we could see tremendous domestic economic benefits.

    For another very exciting electric car start up (with $250 million in backing from Nissan/Renault) google "Project a Better Place" and "Shai Agassi" (what is it with all these Israeli CEO's of electric car companies? Ze'ev Drori and Shai Agassi. Must be the motivation to get off Saudi oil).
     
    Last edited: Jun 30, 2008
  5. otis p. driftwood

    otis p. driftwood Experienced Starter w/First Big Contract

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    So you're okay with the State of California (which has some budget issues, doesn't it?) giving up that much money for the building of a car that goes for over 100K and the new 60K sedan?

    I know development costs money, but is that fair for the taxpayers of Cali?
     
  6. shmessy

    shmessy Maude Staff Member PatsFans.com Supporter

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    #75 Jersey

    If it produces a positive economic return? Sure.

    How many millionaire Hollywood stars live out there? How many do you think could be sold to those folks? Let those guys spend the big flashy bucks to make the point in the early years, then as the company gains its economies of scale and the tech gets better, the price can come down for the rest of us. Here's where Hollywood and all those pontificating stars can put their money where their mouth is. It's brilliant.

    Now if it was in Youngstown, Ohio it would be a different story.
     
    Last edited: Jun 30, 2008
  7. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Not a bad idea, but agree it is a lot of money to intice them to build there.. maybe they figure they will make it up with job gains.. nice idea but Tesla needs to come down in price..
     
  8. BelichickFan

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    #24 Jersey

    Presumably money will come back from all the direct and indirect jobs that are created. I wouldn't say we're "giving up that money".
     
  9. otis p. driftwood

    otis p. driftwood Experienced Starter w/First Big Contract

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    At that price, how many jobs will you be expecting?

    I mean, I'm happy if you're happy, since it's your tax dollars and all.
     
  10. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    I don't know the inner workings but considering all the other crap we spend money on I'm glad to have something moving forward in what should be the greatest state in the country (ducking for cover).
     
  11. STFarmy

    STFarmy In the Starting Line-Up

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    Tesla..... isn't that the guy that looks like David Bowie?

    (anyone else see The Prestige?)
     
  12. otis p. driftwood

    otis p. driftwood Experienced Starter w/First Big Contract

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    80's hair band
     
  13. Real World

    Real World Moderator Staff Member

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  14. otis p. driftwood

    otis p. driftwood Experienced Starter w/First Big Contract

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    It's interesting to see where the "McCain's an idiot for is 300 million battery" people are on this, considering that I agree with you, RW.
     
  15. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey

  16. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    More an incentive than corporate welfare. We've had companies leave the state due to our high taxes, we need to start "importing" companies.
     
  17. otis p. driftwood

    otis p. driftwood Experienced Starter w/First Big Contract

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    Ummm...what sort of taxes would you figure a company would ordinarily pay for that much money?

    California is always in a budget crunch, it seems--but they want to give away tax dollars to a company making 100K electric sports cars.

    That money would be better spent constructing a methane to electricity plant at landfill or for several farms or something. IMO.

    But BF lives there, and he's cool with it, so...:p
     
  18. Real World

    Real World Moderator Staff Member

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    Corporate welfare, and/or when a gubmit (city/state/fed) gives tax incentives for a company to do business in there area, is a very, very fine line. I'm opposed to corporate welfare. I am supportive of tax incentives, or even infrastructure investment, only when it makes sense. I've worked with the City here to bring in new business'. The city will sometimes offer tax incentives for promises of city resident employment. It's a fine line for sure. I'm more opposed to breaks, than I am for them. I think you make your city/state/country more attractive to everyone, or to no one at all. You should be bending rules for one company, to get them in the door, while everyone else pays extra. I have issues with that. I can understand why cities do it, but ultimately, if they were thinking logically, they'd be attractive from the go. It'd be unfair if the city charged you $4,000 for your property taxes, but told someone else they could pay $2,000 for 10 years if they bought the house next to you. It's a fine, fine line. For example, do you think the state should pay for new stadiums for pro franchises? F no.

    The Tesla tax deal is based on equipment purchases, and the sales tax the state adds. California is going to wave the X% sales tax on the first $100 million of equipment it buys. I dunno what the state sales tax in is California, but it's not as lucrative a deal as expected. The NM plant, which is where they were supposed to build, was to create 400 jobs. Again, I don't know the figures persay, but it's a fine line when it comes to stuff like this.
     
  19. Real World

    Real World Moderator Staff Member

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    Actually it's a waving of the state sales tax on the first $100 million they spend. State sales taxes vary in California, but the window is 7.25% to 8.75%, so figure they're getting $7-9 million, which is what the article said. I'm sure the state is going to also include some infrastructure in, and around there proposed facility. It's how they got the Garden here in Boston done. they publically funded the foundation with a wink, wink, inclusion of infrastructure, which would be the train station underneath the building.
     
  20. otis p. driftwood

    otis p. driftwood Experienced Starter w/First Big Contract

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    You must've read a different article, I just went back to the one I posted and didn't see any mention of 7-9 million, or waiving of sales tax, just that they're getting a 100 million dollar tax free loan (financing).
     

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