Tesla Inc. CEO Elon Musk addressed the opening ceremony of the Tesla Program in China, which took place on January 7, 2020 in Shanghai, China.
Aly Song Reuters
Tesla and SpaceX CEO Elon Musk lamented the “legitimate” and “satisfied”; character of the people in the United States and praised the “intelligent” and “hard-working” people in China in the first installment of a three-part interview with Automotive. Podcast News ‘Daily Drive’ published on Friday.
Musk specifically criticized the states of New York and California, which supported his businesses, especially Tesla, with significant tax breaks, regulatory loans and other government assistance.
Automotive News publisher Jason Stein, who conducted the interview, asked Muska, “What about China as a leader in EV strategy in the world?”
Musk replied, “In my opinion, China is swaying. The energy in China is great. People there – it’s like a lot of intelligent, hard-working people. And they really are – they are not entitled, they are not satisfied, as I see more and more satisfaction and entitlement in the United States, especially in places like Bay and LA and New York. “
Last year, Chinese government officials helped Tesla secure about $ 1.6 billion in loans to build and start vehicle production at a relatively new factory in Shanghai. This year, the Shanghai government helped Tesla quickly return to normal operations at its new plant after the region was hit by the outbreak of the Covid-19 epidemic and released extensive quarantines that temporarily suspended production.
Musk stressed that Telsa did not receive as much help from the Chinese government as domestic companies. “They supported each other. But it would be strange if they supported more a company that is not a Chinese company. They are not,” he said.
The enthusiasm expressed for China by the mercury musket was in contrast to its expressed contempt for communism. On Monday to Monday of this week, Musk mocked the social security program in general and gave the capital to Karl Marx.
During the Automotive News podcast, Musk compared USA, California and New York to sports teams that lost their winning status.
“When you won for too long, you took things for granted. The United States, and especially California and New York, have won too long. When you’ve won too long, you take things like any professional team that wins the championship, which you know many times in a row, starts to get lost on its own. ‘ “
Tesla and the states
Among US carmakers, “Tesla has the least government support of any automotive company,” Musk said.
He boasted Tesla’s repayment of the loan to the US Department of Energy in advance.
In June 2009, the Obama Department of Energy granted a $ 465 million loan to Tesla to set up a vehicle assembly plant in Fremont, California, and to begin production of a flagship all-electric sedan. S. Tesla’s model repaid it with interest by May 2013, ie nine years in advance.
The DOE loan was small compared to the tens of billions of TARP loans that rescued General Motors and Chrysler during the financial crisis that began in 2008.
However, Tesla benefited from other forms of state aid in the USA. According to an analysis by the Los Angeles Times, Tesla’s government aid in the United States exceeded $ 4.9 billion.
Tesla’s government support in California included more than $ 220 million in the sale and use of taxes from the California Bureau of Alternative Energy and Advanced Transportation, as well as credits for zero-emission vehicles and state-owned solar renewable energy. The sale of these regulatory loans has been a major factor in Tesla’s profitability over the last four quarters.
According to CNBC and others, the state of New York spent $ 959 million at the solar panel factory in Buffalo, now operated by Tesla, in an effort to bring more than 1,000 high-paying technology and manufacturing jobs to the state.
Tesla has not yet fulfilled her job duties in New York. A financial release this week revealed that Tesla had received a year-round extension from the state to meet the number requirement. If that doesn’t happen, Musk, an electric and renewable energy company, will have to return $ 41 million to the Empire.
Tesla stocks and sales
At the podcast, Musk also celebrated the fact that Tesla is now perceived as a “legitimate” American and multinational carmaker. Although it was a promotion and a failure, Automotive News asked him what was happening with the soaring price of Tesla shares, which would increase by more than 240% this year, and whether Musk felt the need to manage investor expectations.
The Director General called on:
“It’s not worth trying to massage the stock market or manage investor expectations. It’s just. U know? At the end of the day, if you make great cars and the company is healthy and they make great products, investors will be happy … make lousy products, your customers will be unhappy and then your investors will be unhappy. ‘ “
Elon Musk, Chairman and CEO of Tesla Motors, will appear in front of the Tesla Model S electric car on Day 2 of the 2010 North American International Auto Show in Detroit, Michigan.
Bloomberg | Bloomberg | Getty Images
He also gave this advice to other entrepreneurs:
“My advice, you know, is for corporate America or companies around the world to spend less time marketing presentations and more time on your product. Frankly, this should be the number one that is taught in business schools. Put the spreadsheet and this presentation in PowerPoint and go and improve your product. ‘ “
He also predicted that the online sale of cars and the delivery of cars directly to consumers, rather than the sale of vehicles through shops or traditional dealers, would become even more standard after Covid-19.
Tesla saw “strong orders throughout the pandemic,” Musk said. Tesla’s deliveries, which fell by 5% in the second quarter of 2020. As a result of Covid-19’s impact, most car manufacturers saw a decline of more than 30% over the same period. The CEO concluded: “It seems unnecessary in the situation of a traditional vendor, and I think the pandemic has probably only strengthened it.”
Shares of Tesla closed 3.8% on Friday, but this year they managed to operate despite the global coronavirus pandemic and the onset of the recession.