Caterwauls On Paris, by Karl Denninger

You can tell from the way they’re screaming about Trump pulling out of the Paris accord that somebody’s racket is getting skewered. From Karl Denninger at

You can’t possibly be serious.

The screamfest over Trump’s withdrawal from the Paris accord is amusing beyond words.  Among the complainers is Tim Cook who I remind you makes his iPhones in China which was immune from mandatory carbon emission cuts.  If Tim Cook cared about carbon emissions he would make them somewhere else.

But he hasn’t and he doesn’t.

Then there’s Elon Musk, who stomped off in “indignation” when the announcement was made.  The truth is a bit more complex; Musk is a welfare queen and Tesla, including all that it produces (batteries, solar panels and roofs and of course cars) is utterly dependent on both government subsidy and force to make you buy them under penalty of paying more.  Tesla loses money on every car it sells and without both government subsidies and a belief they will continue the company is literally at risk of collapse.

Don’t take my word for that, by the way — if you’re too lazy to read the company financials for yourself Musk himself has said so.

“I do believe this market cap is higher than we have any right to deserve,” Musk said to The Guardian. “This is not some situation where, for example, we are just greedy capitalists who decided to skimp on safety in order to have more profits and dividends and that kind of thing. It’s just a question of how much money we lose. And how do we survive? How do we not die and have everyone lose their jobs?” 

Got it folks?  Tesla is a money-losing firm.  It always has been.  There are no profits.  It exists because it can steal from the taxpayer and Wall Street believes it will be able to continue to do so and thus lets Tesla float bond issues in the market.

So is Musk truly indignant for the future of the planet or is the real problem that he smells brimstone and the end of his charade?  It’s not like you have to guess as Musk has told youin plain English (both in interviews and in his quarterly filings) what the truth is.

To continue reading: Caterwauls On Paris


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