How Tesla uses cash from Nevada casinos to boost its bottom line

Tesla has sold $131 million worth of tax credits to Nevada casinos. State incentives allow that total to expand to $195 million.

Given Elon Musk’s dubious track record for hitting his goals, it may be a roll of the dice whether the Tesla CEO delivers a profit later this year. Fittingly, his success will depend partly on money from Nevada casinos.

Since 2015, Tesla has boosted its bottom line by selling tax credits to casinos such as the MGM Grand.

The casinos use the credits, purchased at a discount, to lower the gambling taxes they pay the state. Tesla uses the proceeds to ease its losses or increase its profit. Musk told investors on June 5 that “it’s looking like” the company will be profitable later this year.

So far, Tesla has sold $131 million in credits to casinos and has booked a total of $163 million in anticipation of more sales soon.

Millions more will probably be used in the quarters ending in September and December. That could be enough to swing a loss to a profit for the company.

This is one way that US Businesses are using those taxed based incentives by state government that are supposed to build manufacturing units to hire their citizenry. Turn those giveaways into a cash profit to improve their bottom line. When are these states going to learn, tax giveaways are a losing proposition in the long run. Get ready for the Amazon HQ2 announcement coming soon, this one will curl your toes. Amazon is getting ready to give some city/state governments a royal finger so they can build Headquarters II in their city.

Leave a comment

Your email address will not be published. Required fields are marked *