Similar to Uber and Lyft, alive due to massive subsidy by venture capitalists. Tesla is alive die to massive subsidy of our tax dollars.
Uber and Lyft at least they are throwing their money away voluntarily. Bit they are destroying legit unsubsidized business (taxis).
“Uber and Lyft ... are destroying legit unsubsidized business (taxis).”
In many large metro areas, the so-called “legit” taxi companies were legalized monopolies. The value of the implicit subsidy they received could be measured in the value of the licenses or “medallions” required to legitimately operate. And they behaved like monopolies by delivering crummy service in trashy vehicles, often at high, fixed prices. Uber and Lyft disrupted these monopolies, which have had to respond by improving service and literally cleaning up their act or exiting the market.
Investment by VCs is certainly not a “subsidy.” I worked for several VC financed young companies and they are looking for solid returns. If you miss your numbers, you get a new VP Sales. Miss again you get a new CEO. Miss again and half the company is looking for new work. It is brutally efficient and not for the faint of heart. But a “subsidy”? Ha!