BREAKING STORY: Billionaire MUSK admits, on 60 Minutes, he broke the law to get Tesla funded. Crony politics and insider deals with your tax money exposed….Here is The rest of the story beyond the broadcast…
On the 3/30/14 60 Minutes episode, and associated recorded footage, Elon Musk confesses that Tesla was heading into bankrupty on Christmas of 2008. This is contrary to what he told the U.S. Government, in writing, and a violation of Federal law regarding “unjust gain” and “falsification” on his DOE taxpayer cash loan documentation. The Department of Energy LPO administers two federal loan guarantee programs – Section 1703 and 1705 – for energy technology projects authorized by Title XVII of the Energy Policy Act (EPAct) as amended. It also administers direct loans for the Advanced Technology Vehicles Manufacturing (ATVM) program as authorized under Section 136 of the Energy Independence and Security Act of 2007 (EISA).
Per the U. S. Department of Energy, The GAO, The FBI and The United States Congress regulations, DOE’s Loan Guarantee program, authorized in Title XVII of the Energy Policy Act of 2005 (EPAct); the Section 136 Law that funded Tesla, enacted by Congress, specifically states, by law, that you could not get a DOE ATVM or LG loan if you were about to go bankrupt or if your company can’t survive without the ATVM Loan or LG Loan taxpayer cash:
Tesla could not legitimately qualify for a BB, or any kind of good credit, rating on the date of it’s application:
Musk has now admitted, in multiple recorded statements, that Tesla was about to go out of business without the DOE kickback cash. This is a violation of Federal Law. Tesla could not have gotten the funds it received unless very highly placed federal staff told other highly placed federal staff to “LOOK THE OTHER WAY!”, just like with Solyndra. Investigators and reporters are now seeking to acquire an unbiased forensic financial review of Tesla from 2005 to today. Multiple lawsuits against Tesla already charge them with “cooking the books”.
Tesla also had its cash participation requirement waived, per it’s own staff in public comment:
Over 1200 pieces of evidence affirming these facts have been submitted to investigators.
According to staff aides, former DOE staff and finance controllers, Rahm Emanual and David Axelrod, while in the White House, “ordered Tesla to be funded even though Tesla was noted as an unsound company by finance consultants to the Government”. Two White House aides say that Steve Rattner, working inside the White House, helped Get Daimler to create last-minute paperwork that would make Tesla have a “paper viability” in exchange for UAW DNC candidate votes. In reality, Tesla, even after the Daimler fudge deal, still could ONLY survive with the DOE Cash! Tesla is massively below the numbers they submitted in their 2008 paperwork to DOE.
Former DOE staff and aides have stated that the Tesla “wave through” was a kickback to Tesla’s and Googles investors who were massive campaign donors.(Google co-owns Tesla- Hence Google never allows any actual negative news about Tesla on it’s servers).
Additionally, former NASA staff and engineers have stated that they were fired and the exact same portion of NASA shut down that Tesla’s Space X company then immediately took over as an additional kickback to Tesla and Google investors. Those investors: in Tesla, Google, and Space X, are all the same campaign contributors.
It also, appears, in the 60 Minutes episode, That one of Musk’s wives left him when she found out what kind of dirty deals he was involved in.
Any car company that received that much “free money” could have sold the relatively small number of cars that Tesla has sold as of today. While the cars may now be pretty, they are born from crime, using your tax dollars.
Additional evidence and materials coming…
Let’s examine a small part of the evidence set:
TDG_LAT, G-WashPo, with research by GJ, KL, & MN and a tip o’ the hat to SUNLIGHT FOUNDATION.
This is not the first recording of Musk confirming the lie:
Under Section 136 of the Energy Independence and Security Act of 2007 of the United States Congress, it is a felony for the Department of Energy to issue a loan to a company that is about to face potential bankruptcy. The very specific written Congressional regulations forbid it. We have already seen a number of other recipients immediately go bankrupt after they got their DOE money, grabbed their upfront finders fees/campaign conduit-ing cash and ran. Recently revealed documents appear to show Tesla’s DOE loan was rigged in order to favor Tesla’s investors in exchange for campaign funding. In the video below, and associated articles, Musk confesses that Tesla was about to go bankrupt even as it told Congress, in writing, that Tesla was all fairies and unicorns and rolling in dough. It turns out to have been a lie. The actual financial metrics, now being viewed by forensic accounting experts under numerous shareholder lawsuits that have now been filed, show that the reality was vastly different then Tesla reported. Did Musk lie in his DOE loan application? Did DOE staff ignore the lie when they reviewed the loan application? Did someone tell them to? See Below:
EVIDENCE ITEM # BATES: Federal investigators reveal; “…in side-by-side comparison, Tesla rated worse than most other applicants but got the taxpayer cash because of crony back-room campaign finance deals” :
EVIDENCE ITEM # BATES: Actual founders of Tesla and staff have sued Elon Musk for Fraud:
EVIDENCE ITEM # BATES: Financials show Tesla was not “viable” per the law, as written:
EVIDENCE ITEM # BATES: Documented meeting in which DOE staff confirm you must be solvent to win loans:
EVIDENCE ITEM # BATES: DOE announcement of Tesla loan for a non-existent factory that never existed. Not a typo:
EVIDENCE ITEM # BATES: DOE stated total due diligence yet how could Solyndra have happened if there was even the most minimal due diligence? All due diligence was ordered to be ignored:
EVIDENCE ITEM # BATES: In California, the state with all of the FBI arrested Senators, ONLY Tesla got this TAX waiver deal and every other company that tried to get it was stone-walled:
EVIDENCE ITEM # BATES: DOE staff transcripts from public meetings confirming: “Cash Problems = No Loan. Bad Debt Ratio = No Loan”. Tesla violated both in an extreme manner:
EVIDENCE ITEM # BATES: Tesla desperately worked behind the scenes to stop delay of DOE funds because their survival depended on it:
EVIDENCE ITEM # BATES: Tesla lobbyists tried to keep smaller competing companies out of program but Terry, and others in Congress try to keep doors open for all:
EVIDENCE ITEM # BATES: Tesla signed off on these agreements but still lobbied through Google and VC subsidiaries”:
EVIDENCE ITEM # BATES: GAO finds DOE incapable of performing due diligence on TESLA application:
EVIDENCE ITEM # BATES: Hundreds of emails, phone transcripts and testimony show that the White House controlled all DOE loan approvals, NOT DOE, in to compensate campaign backers. Tesla/Google investors were major campaign resources suppliers :
EVIDENCE ITEM # BATES: Tesla did not comply with these rules nor provide the required actual payments on time:
EVIDENCE ITEM # BATES: DOE Lawyer Cohen told every applicant: “You must not need the money in order to keep going or you won’t get it”:
EVIDENCE ITEM # BATES: Federal Regulations which Tesla was “waved-through” on:
EVIDENCE ITEM # BATES: Recordings are available from this phone call confirming rules that Tesla evaded:
In recent interviews Elon Musk refused to say how many cars had been built by Tesla.
Elon Musk, after scamming a number of other cities about their factory, bought the NUMMI car factory in Fremont. NUMMI was built by Toyota and General Motors and operated as the premiere showcase car factory in the world. GM was using it to learn how Toyota builds cars so good.
It was built to deliver 500,000 CARS PER YEAR!!
500,000 CARS PER YEAR IS WHAT NUMMI WAS FULLY EQUIPPED TO BUILD!!
NUMMI could rapidly shift from one new car design to the next if people knew what they were doing. NUMMI switched out between the Chevy Nova, The Geo Prizm, The Chevy Prizm, The Hilux, The Voltz, The Vibe, Tacoma Pick-up Trucks, The Matrix and could change up to a whole new car within 19 days.
This was a ready-to-go car factory. There should have been no learning curve, no “build-a-new-car factory” delays, it should have been all up and running per the notarized written assurances Tesla gave to the DOE, In WRITING!
So Musk got it and fired all of the car builders.
Tesla has been trying to get people to buy a non-hand-built version of their car since 2003!!! That is a LONG TIME. GM AND TOYOTA built a ton of new car designs in the same factory in the same time-span!!
SO… after spending HUNDREDS AND HUNDREDS AND HUNDREDS of MILLIONS of YOUR TAX DOLLARS and beating their awful car design for a decade, how many cars have they built?:
They are still hand building the cars. The factory turns out to be almost unused except as a very expensive roof.
In a 500,000 car capacity ready-to-go, state-of-the-art car factory after spending hundreds and hundreds of millions of dollars for a factory that GM AND Toyota had already tuned up they find that EVERYBODY thinks their car is a narcissistic Stanford yuppie Sandhill Road rich frat-boy meat-head man-toy! Nobody wants it!!!
EVIDENCE ITEM # BATES: Independent review finds horrific problems:
EVIDENCE ITEM # BATES: Tesla original contract with the taxpayers. This is one of a set. Click on link to open PDF:
EVIDENCE ITEM # BATES: Tesla SEC FILING:
EVIDENCE ITEM # BATES: Another Tesla SEC FILING:
STORY COMMENTS BY WASHINGTON POST WRITER: THE TV SCRIPT:
The following quotes are from “Fast Cars and Rocket Ships” which aired on March 30, 2014. Scott Pelley is the correspondent. Harry Radliffe, producer.
How is it possible that Elon Musk could launch two impossible businesses — SpaceX, a builder of rocket ships and Tesla which could be the first successful car company startup in America in 90 years.
COMMENT: His VC’s bribed government decision makers.
Scott Pelley: How did you figure you were going to start a car company and be successful at it?
Elon Musk: Well, I didn’t really think Tesla would be successful. I thought we would most likely fail.
COMMENT: Then you lied to the U.S. Government in your DOE application
Scott Pelley: But you say you didn’t expect the company to be successful? Then why try?
Elon Musk: If something’s important enough you should try. Even if you — the probable outcome is failure.
COMMENT: MUSK here is saying he used taxpayer money for a “concept project” he no hopes of paying back.
“Well, I didn’t really think Tesla would be successful. I thought we would most likely fail. But I thought that we at least could address the false perception that people have that an electric car had to be ugly and slow and boring like a golf cart.”
COMMENT: MUSK here is reiterating he used taxpayer money for a “concept project” he no hopes of paying back.
And, if you’re running from zombies, it’s good to know the Model S won the highest quality rating in the history of consumer reports
COMMENT: Tesla PAID consumer reports for a good review for PR purposes.
and has the government’s highest safety rating.
COMMENT: He must be smoking his own toxic fumes from the many on-fire exploding Tesla’s.
Kimbal Musk: When we moved to Silicon Valley we had nothing. So we
COMMENT: “We” who? Is he including the first wife he cheated on?
actually lived in the office. And we would sleep on the floor in the evening and go shower at the YMCA the next morning. And then we would be ready to go before some of our employees would arrive, so they wouldn’t think we were actually sleeping in the office.
But at the age of 37, he hit rock bottom. His first rockets failed to reach orbit, and an early model Tesla roadster had quality problems.
COMMENT: They still have vast numbers of problems with the Tesla Model S
Scott Pelley: In 2008, the rocket company is not going well, you’ve had three failures.
Elon Musk: Right.
Scott Pelley: The car company is hemorrhaging money–
COMMENT: So that made them VIABLE for DOE? Hmmm.. Lie!
Elon Musk: Yeah.
Scott Pelley: What was that year like for you?
Elon Musk: And I’m getting divorced, by the way, add to that. That was definitely the worst year of my life.
That terrible year was captured in a documentary called “Revenge of the Electric Car.” His plant was filled with flawed cars that couldn’t be delivered. [“Revenge of the Electric Car:” Holy mackerel. Jesus! We have like an army of cars here. Like, Jesus! This is frightening. It’s really pedal to the metal here. I mean, each month that passes is literally costs us tens of million of dollars we need to appreciate that.]
To save Tesla, Musk needed millions more from investors. His fortune was gone.
Elon Musk: When we’d call people and say, “Hey, would you like to invest?,” they’d be angry that we just called. That it’s like– it’s not like no– no and– no and– you know, various expletives.
Scott Pelley: He was essentially broke.
Kimbal Musk: Oh yeah. In debt. More than broke.
Scott Pelley: More than broke.
Kimbal Musk: Yeah.
Elon Musk: I remember waking up the Sunday before Christmas in 2008, and thinking to myself, “Man, I never thought I was someone who could ever be capable of a nervous breakdown,” but I felt, “This is the closest I’ve ever come.” ‘Cause it– it seemed pretty– pretty dark.
Toward the end of 2008, SpaceX prepared its fourth attempt.
Elon Musk: We were running on fumes at that point we had virtually no money.
Scott Pelley: So a fourth failure?
Elon Musk: A fourth failure would have been absolutely game over.
Scott Pelley: Done.
Elon Musk: Done.
“I remember waking up the Sunday before Christmas in 2008, and thinking to myself, ‘Man, I never thought I was someone who could ever be capable of a nervous breakdown,’ but I felt, ‘This is the closest I’ve ever come.'”
Elon Musk: NASA called and told us that we’d won a $1.5 billion contract.
COMMENT: As part two of the White House kickback bribe to his investors in exchange for those investors campaign contributions.
Scott Pelley: They saved you.
Elon Musk: Yeah, they did.
Scott Pelley: Financially and maybe even emotionally.
Elon Musk: Well, I’ll tell you that was, that was definitely helpful, yeah.
Two days later, on Christmas Eve, Tesla’s investors decided to pour in more money.
Scott Pelley: So you were saved in the period of three days by two completely unexpected events.
Elon Musk: Yeah.
Scott Pelley: Merry Christmas.
He’s at SpaceX three days a week, two days at Tesla and weekends are atm home with his five sons from his first marriage
COMMENT: Who he cheated on, showing his character.
and his second wife Talulah whom he met in london.
Talulah Riley: It all happened very fast. We were– we were engaged after, I think, sorta two– two weeks of knowing each other. And I was 22 and it was– there were all these boys. And it was– which was the best part. And– it was– it was fast. And then we were in it.
Scott Pelley: You knew each other two weeks before you got engaged?
COMMENT: Does this show something about his character? Is he a sociopath? Meets a girl in a bar and suddenly off to the alter after cheating on the other wife and kids.
Talulah Riley: Something like that–
Scott Pelley: What was so attractive?
Talulah Riley: Well, he was very charming and definitely the most interesting
COMMENT: ..”and richest”…
and eccentric person I have ever met.
– that price is counting on the hope that Tesla will create an electric car at one-third the cost of the Model S which runs about $100,000. This is what stands in the way. This slab covered in plastic is the battery.
Scott Pelley: So this is essentially the bottom of the car. The front wheels would be there, the rear wheels would be right here. It fills up the entire bottom of the car.
Elon Musk: That’s right.
This is how it fits into the bottom of the chassis. Trouble is the battery’s so expensive musk can’t build a $35,000 car with acceptable range. To make Tesla successful, he must reinvent battery manufacturing.
Musk has just announced a $5 billion factory to be built in the U.S. which, he says, will make more lithium ion batteries than all the other plants on earth combined.
Scott Pelley: What is it about you that seems to invite skepticism?
Elon Musk: Well, I think it’s because we’re doing these things
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