Tesla Reports Huge Earnings; Score One for America and Capitalism

Huge earnings from Tesla:

Tesla reported adjusted earnings of $0.11 a share, beating Bloomberg’s consensus for earnings of $0.04 a share and loss of $0.26 a year ago.

Revenue came in at $857.5 million, versus a consensus estimate for $813 million.

Of course, the libs cry ‘socialism’ because Tesla got a loan and subsidies; the loan was paid in 2013, and subsidies are only a small fraction of the sticker price. Now TESLA is profitable, posting a quarterly profit of $17 million. Tesla is an example of how government spending can assist the private sector to help unlock economic value in ways that the private sector cannot do entirely on its own. Other examples include the successful bank bailouts and defense spending. One can argue that government intervention is justified if it represents an optimal transfer of capital that would have not otherwise occurred, resulting in a very high ROI. For example, the bank bailouts which in 2011 the treasury reported a profit. Trillions of dollars in global wealth has been created in the six years that have followed TARP – not a bad investment. Same goes for Tesla, now valued at $30 billion from a $465 million loan – or a nearly 6000% ROI. The libs say it doesn’t count because government intervention somehow sullies the pristine waters of capitalism. To the left, everything is socialism unless capital is earned in the way they approve of. My response is cry me a river.

The left, especially the new York Times, wants Tesla to fail because they resent its success, and because only the rich can afford a Tesla. Perhaps the government should pick winners and losers – and to some extent it already does. Tesla is a winner. Low-IQ people on food stamps and the unemployed are losers, which is why we also need entitlement reform.