Comments on: Tesla Death Watch 10: CA Small Biz Owner Pissed at Tax Break

By: RedStapler

RedStapler — Mon, 07 Jul 2008 06:59:15 +0000

Making PV modules is a relatively energy and capital intensive process. Labor costs are not that much of a factor as their is little to no touch labor involved.

California has the most expensive electricity in Contiguous US. I could write a medium sized book about all the policy shortcomings that factor into this, but suffice to say the CA is amongst the LAST places you want to put a manufacturing facility for most things.

By: ZoomZoom

ZoomZoom — Mon, 07 Jul 2008 00:23:55 +0000

I agree with the earlier comment about unequal application of taxes. Subsidies should be considered illegal, if not unconstitutional.

By: Kevin

Kevin — Sun, 06 Jul 2008 23:15:33 +0000

for small businesses like his”
Cypress Semiconductor is a publicly traded company with a market capitalization of $3.4 billion and annual sales in the $1 billon range.

I think they’re talking about SunPower Corporation specifically …. which I see is only on track to hit a run rate of a billion in revenue by about now … OK nevermind that’s pretty funny, but c’mon TJ, move everything to Texas!

By: John Horner

John Horner — Sat, 05 Jul 2008 20:46:43 +0000

“Wafer boy” isn’t going to be surprised by anything in Texas. Cypress’ second wafer fab was built in Round Rock (North of Austin) 21 years ago and remains one of the company’s main manufacturing facilities to this day.

By: Landcrusher

Landcrusher — Sat, 05 Jul 2008 18:27:00 +0000

Wafer boy is going to get a nice surprise in Texas. They will likely want “use” tax on all his capital equipment at a rate of over 2% of estimated value per year. They like to make their own estimate of value too.

Good luck selling anything at it’s appraised value.

By: fisher72

fisher72 — Sat, 05 Jul 2008 18:20:11 +0000

It would seem there is a lot of cheap industrial facilities the big 2.8 and their suppliers have available to produce this car. Likely ample tax breaks in these rusty belt states.

By: John Horner

John Horner — Sat, 05 Jul 2008 16:51:57 +0000

“for small businesses like his”

Cypress Semiconductor is a publicly traded company with a market capitalization of $3.4 billion and annual sales in the $1 billon range. Hardly a small business.

That said, personally I think all governments at all levels should be prohibited from giving selective tax breaks and subsidies to favored companies.

By: jberger

jberger — Sat, 05 Jul 2008 15:56:59 +0000

Ahhhh Tesla,
I hope the sedan “production” is better than the mythical sports car.
Why would ANYONE locate a new auto manufacturing plant in the Bay Area? Other than Manhattan, I can’t imagine a place with higher labor and land costs, PLUS the crazy enviromental regs that blanket California.

I’d say that decision is proof the Tesla is more of a stock market hype manufacturer than a company interested in producing a product.

I do have an idea for the name of the new sedan “Zap II”.