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Is Musk's rejection of government subsidies "selfish" or "patriotic"?

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

The scale of the new energy vehicle market continues to expand, and many countries are constantly using industrial advantages and technological advantages to broaden the development path of new energy vehicles. Looking at the new energy development of China and Laomei, many domestic enterprises have room for further development, especially technology companies and battery companies related to new energy vehicles; and Laomei has also proposed new energy policies and given a large number of financial subsidies to related enterprises.

Under normal circumstances, when vehicle manufacturing enterprises open up new production chains, they will enjoy a large number of support policies and subsidies given by the state to enterprises in order to facilitate better development. However, Tesla, as one of the world's most important car sales and manufacturing companies, has not only faced bankruptcy crises many times, but also received financial subsidies from relevant departments in Laomei for many times.

But this time, Musk directly rejected the car subsidy plan proposed by the relevant departments, why would the Tesla CEO, who was deeply affected by the subsidy preferential policy, speak wildly?

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

Tesla received financial subsidies

Since the establishment of Tesla, the company has been enjoying more favorable subsidy policies and programs. Watching Tesla repeatedly enter the crisis of corporate bankruptcy, it has used subsidies again and again to get the opportunity to make a comeback. Since 2000, Tesla has received 2.18 billion yuan of subsidies and preferential policies, which is a subsidy from the Laomei federal government to enterprises; since 2007, Tesla has received a total of 13.9 billion yuan in subsidies, which come from many states in Laomei, mainly to help local Tesla factories get development opportunities, expand the recruitment of employees in enterprises, and solve the employment problems of local residents. In addition to the above funds, many states in the United States have also made loans and venture capital investments in Tesla, with a total amount of up to 3 billion yuan.

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

In addition to the importance that Lao Mei attaches to Tesla, many countries have also carried out appropriate subsidy policies for Tesla. China's new energy automobile industry is in a rapid stage of development, and Tesla, as the world's most famous vehicle manufacturing company, will naturally bring more benefits to the local area. As a result, Tesla has received a number of subsidies from China, with a total amount of up to 2.64 billion yuan. In addition to China, at the end of 2021, Germany subsidized Tesla's battery factory, and the amount of subsidies has reached 8.48 billion yuan. If we only analyze the development of Tesla from the data, then Tesla is deeply affected by the dividends brought by subsidies. This time, Musk directly rejected the car subsidy policy of the relevant departments, which is unexpected.

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

Tesla's development path is very sad

In 2008, countries around the world were in a period of rapid scientific and technological development, but no new energy vehicle dared to produce electric vehicles. As the big brother in the industry, Tesla has overcome all kinds of difficulties and risks and directly launched electric vehicles. This would have been a very good publicity opportunity and could even increase Tesla's influence.

However, at that time, the global economy was mired in the financial crisis, and the purchase of new energy electric vehicles became a luxury. Coupled with the fact that the sales price of the car is far lower than the sales price of new energy vehicles, the electric car has made Tesla Company suffer from the enemy and almost bankruptcy, and finally can only reduce the number of employees and overcome the development crisis.

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

From 2017 to 2019, Tesla has faced multiple bankruptcies. For example, in March 2018, when global financial markets and various industries were facing multiple challenges, Tesla became one of the most shorted stocks. In May of the same year, the company not only faced a decline in stock prices, but also a one-month near-bankruptcy phase.

With the passage of time, more and more consumers attach importance to the quality of new energy vehicles, but at the same time, the yield of new energy vehicles produced by Tesla is not high. Worldwide, car production companies face a low rate of car rework, which can save the company a lot of repair costs. However, Tesla has produced the opposite state, although new energy vehicles are indeed very cost-effective, but the pass rate of the car is only 14%. A company produces multiple goods that are not qualified, and the enterprise is faced with two different choices: the first option is to return to the factory for maintenance and minimize losses; the second option is to directly scrap, and the risks and costs faced by the enterprise will be greater.

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

In addition, global trade is constantly affecting every company, especially car manufacturers who need to obtain parts from multiple companies. Tesla has a good track record in batteries and car assembly, and has brought tens of thousands of jobs to local residents. However, it is difficult for qiao women to cook without rice, and when they encounter a lack of key components, they can only take measures to stop work or find ways to replace key components. Tesla does not have an advantage in logistics, and even encountered the situation that parts and components are not delivered in place, which will inevitably affect the production of cars.

Lao Mei introduced an energy development plan

In order to establish different advantages in the field of new energy, Lao Mei decided to carry out new energy development programs. According to the specific information released by the relevant departments, each electric vehicle can receive a total subsidy worth $7500. If a car company gets more and more conditions, on top of that, the company can get a $5,000 subsidy. In fact, the plan has two hard conditions, first, the car manufacturing company must hire Laomei employees, thus solving the situation that a large number of employees cannot find jobs. Secondly, automobile manufacturers can join the Laomei Automobile Union to enjoy more subsidy programs.

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

However, Tesla has not become a member of the automobile union, which means that Tesla cannot enjoy subsidies, and it is no wonder that Musk will bluntly say in the process of interviewing tesla that Tesla does not need subsidies, and even said that subsidies for new energy vehicles should be canceled.

The so-called automobile trade union refers to the fact that the agency will protect the legitimate rights and interests of employees in the automotive industry, so that the automobile manufacturing industry is facing more development advantages. However, an organization or institution has a great deal of power, and many staff members can also develop a state of corruption and corruption. Workers who join the organization must pay 5% of their personal income, and in the face of disobedient automobile companies, the organization's plan is to strike. Apparently, Tesla was faced with more options and did not join the so-called auto union.

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

Rather than saying that Musk rejected the car subsidy plan proposed by the relevant departments of laos and the United States, it is better to call it Tesla's failure to meet the criteria for receiving subsidies. You think he is patriotic, in order to save money for the country, but in fact it is only because he himself "does not meet the standards".

summary

In general, although Tesla has a very strong strength in the world, the new energy subsidy scheme proposed by the relevant departments of Laomei is aimed at different car production and sales companies. Even if most producers can benefit from subsidies, it is an unfair competition for companies that are not unionized. In contrast, the subsidies given by relevant domestic departments to the new energy automobile manufacturing industry are more fair and just. A fair solution is conducive to the development of a business, and the emergence of unfair phenomena in the industry will only make large enterprises and small enterprises fall into different development difficulties.

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

Is Musk's rejection of government subsidies "selfish" or "patriotic"?

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