2022 – Elon Musk lauds global recession: ‘It’s been raining money on fools for too long’ | Andrew Lauren

WWith the invasion of Ukraine and lockdowns in China putting additional pressure on a supply chain that has yet to recover from the ongoing pandemic, many are predicting a global recession. Bring it on, says Elon Musk.

“That’s actually a good thing,” Musk said. He said in response To a question from a Twitter user. ÔÇťMoney has rained on fools for a long time. Some bankruptcies must happen.

He continued, “Also, everything about Covid staying at home has fooled people into thinking you don’t have to work really hard. A rude awakening!”

It’s tough talk from a man who is said to be worth more than $218 billion, more than anyone else in the world. It conveniently ignores the large handouts that Musk himself received in the process of increasing his net worth after spending $6.5 million to acquire a majority stake in Tesla in 2004. How has Musk weathered the economic storms and the brazen awakening that followed?

In 2008, the company launched its only product – a version of the Lotus Elise called the Roadster. With a starting price of around $80,000, the coupe wasn’t exactly cheap to haul; 2,450 global sales made Musk’s vision of mass-produced electric cars seem like a pipe dream. But a year later, Tesla received a $465 million loan as part of the government’s stimulus package – money paid mainly for the development and manufacture of the flagship Model S.

Musk, who soon finds out that Tesla prepaid this loan, is moving those cars with the help of significant tax credits for electric vehicles. He also takes advantage of the fact that his cars are zero-emissions By reselling its stockpile of carbon credits to high-carbon competitors under pressure to clean up ÔÇö at least $517 million since 2015. There’s reason Bill Ackerman and other short sellers are betting hard on Tesla’s failure. The company would be as dead as Nikola Tesla himself if the government hadn’t “rained money on fools”.

Musk also claimed on Twitter that a recession would be a good thing because “companies that are inherently cash flow negative (i.e. value destroyers) must die to stop wasting resources.” From 2010 to 2018, Tesla raised $20 billion in capital while producing $9 billion in negative cash flow; 2021 was the company’s first full year of profitability.

Washington was not alone in being generous. Tesla also benefits from government tax credits for green vehicles and routinely takes advantage of corporate subsidies. As of last August, the company had received incentives of about $64 million to move to Austin, Texas and build Giga Texas ÔÇö the brand-new plant that is expected to produce another idea for Gonzo Musk, the Tesla Cybertruck.

Other Musk companies have also benefited from workplace sponsorship programs. In 2015, the LA Times estimated that Musk’s companies had benefited from about $5 billion in government support. They include SpaceX, which just secured a $2.89 billion deal with NASA and a $653 million deal for the Air Force, both in 2021; and SolarCity, which benefited from $1.5 billion in federal aid and also bled cash before Tesla acquired the solar company ÔÇö and which itself accepted payment benefits from Donald Trump’s $600 billion pandemic stimulus package.

Musk can scold the workers of the house whatever he wants. But when it came to profiting from handouts and credits, there was little more to it.