Political Value Investing By Tesla

It may not surprise you to learn that Tesla has been the recipient of millions of dollars of subsidies and regulatory benefits from California. But it may surprise you to learn those rewards haven’t taken much political investment from Tesla. Eg, from2017 to 2020, Tesla contributed just $305,000 to California legislators, no single contribution exceeding $4,700:

We liken special interest investment in the state legislature to investment in a “mis-priced security” in which value far exceeds cost. Like CCPOA, the prison guards union that for little political spending pries ~$5b per year in salaries and benefits for its members from the state’s General Fund, Tesla learned it takes little to garner a lot from the state. Supporters of the general interest must do the same. That’s why GFC has climbed the contribution charts:

But our task is much tougher than Tesla’s, CCPOA’s or the others. We seek to roll back pensions, eliminate OPEB and LIFO*, extend teacher tenure, liberate licensing restrictions and reform other bad policies resulting from decades of Sacramento’s occupation by special interests. Not only must we keep boosting our political spending but we must last forever. That’s because special interests will always prowl Sacramento.

In 2021 we need you to get out your wallets and join in the battle. Elon Musk may have moved to Texas but the bad policies he and other special interests take advantage of remain. Govern For California supports lawmakers who serve the general interest.

*Other Post-Employment Benefits (eg, subsidies for retired employee insurance) and Last-In, First-Out teacher layoffs.