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Out in the electric car world the ten foot company is set to announce the company's.
First ever quarterly profit this week Wednesday but reportedly what's driving this company into the black.
-- -- -- Paul Chester at the national legal policy center.
Larry how is that possible that this company is making money only because of tax credits is that your analysis all.
Well that's what it looks like in California they've they've they've got a -- -- a unique economy California where.
They set up these special deals for her renewable energy for electric cars from manufacturers.
And they get these credits that some like it sort of many Cap and Trade System.
Where that manufactures the the so called green cars no one's -- -- -- zero emissions are low emissions.
I -- they can get credits and sell those to the big auto manufacturers -- don't want to make those those cars and therefore they're they're capping the admissions that they have and and the the other auto makers can exceed them.
And -- to comply with the whatever the mandate is they they buy those credits and -- coming to compliance.
So the -- looks like it's gonna have prop it up to the tune of 250 million dollars this year and that's largely thanks to the -- of California taxpayers.
California course has some very intense rules about what they want to see in the car market they want more and -- these cars to be green.
Is that gonna happen is that logical -- only happen with a lot of taxpayer help.
Well you know we see a lot of taxpayer help there -- a lot of these electric car companies both federal and state especially in California -- -- -- was a California company.
Basically a competitor.
-- is in the extreme luxury sedan market and they what they're about to go -- then they had a billion private investment.
In -- in addition to this federal tax subsidies.
-- -- is just playing the game -- and they're apparently they're running the company a little better than if disputed breakfast at her but Tesla.
Also -- taken of advantage of this temporary what I think it's a temporary opportunity to.
Capitalize on these short term credits.
Pretty soon as Margaret Thatcher -- run out of other people's money California is about a trillion dollars.
Our ongoing on a trillion dollars in debt -- only to be able to do this for so long so you know.
-- hasn't had just get -- won't Paul isn't that just the problem that that would end government puts out money like that tax credits or whatever.
You know you talk about individuals.
Trying to score the dough boy let me tell you -- companies will jump on that even faster.
As a way to make money they understand how that works.
It it's just corporate cronyism of the worst time.
-- that it distorts the market and and that becomes their goal ought to we've seen it with the wind and solar energy firms they just keep coming back because.
They do all they -- their living on -- the subsidies they can't.
Sell their product they can't sell there.
Their service and make money off of it's the same thing with the electric vehicle companies.
By the consumers want gas powered.
Cars -- they can refuel quickly will go -- long distance that's still what they want electric cars in the batteries don't deliver that and they won't deliver enough for a long time Paul Chester thanks for coming back on the show up pleasure to have you here.
Thank you --
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