Posted on 09/14/2011 8:08:22 PM PDT by artichokegrower
Tesla Motors, makers of the first electric car that can travel more than 200 miles between charges, got its $465 million loan guarantee from the government Tuesday. Tesla has been banking on the guarantee for more than two years. The guarantee essentially insures the San Carlos-based company can borrow the money from financial partners to build a factory to produce for Tesla’s next-generation sedan, the Model S. The sedan will sell for around $45,000, that’s with a $7,500 tax credit from the government, and is about half the price of its first production vehicle, the high-end Tesla Roadster.
Tesla had struggled to raise money this year as banks essentially stopped lending amid the credit crisis and recession. Tesla Chairman Elon Musk essentially bankrolled the company with his own money through the beginning of the year. Tesla then signed a deal with Daimler AG, which took a 10 percent stake in the company in May. The Department of Energy had indicated that strategic partnerships with credit-worthy companies would be a major advantage as it evaluated to which companies it would award loan guarantees.
Tesla looked at building a factory in San Jose, which aggressively courted the company. But according to terms of the loan guarantee had to find a brownfield site – essentially a former factory it could retrofit — if it wanted to use the government’s guarantee. When it was unable to find an appropriate site in San Jose, it abandoned plans there and focused instead on the LA-area.
Tesla’s award was part of $8 billion the government said today it would award for advanced vehicle technologies. Ford Motor Co. (NYSE: F) will get $5.9 billion to transform factories across the country to make more fuel efficient vehicles. Nissan North America got $1.6 billion to retool its Smyrna, Tenn. Factory. Tesla will use part of the money it raises to manufacture drivetrains for its cars, Daimler and possibly other companies.
By supporting key technologies and sound business plans, we can jumpstart the production of fuel efficient vehicles in America,” said Energy Secretary Steven Chu, in a statement. “These investments will come back to our country many times over – by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions.”
The Advanced Vehicle Technology Program is part of the $789 billion economic stimulus package the federal government passed in January.
But Tesla had applied for the government prior to the passage of the stimulus package through a program under the Bush administration that was never funded.
I just can't stretch my imagination far enough to believe that this thing will sell.
We seem to want the same thing. I just don’t see it as currently feasible.
Very few of which know jack about electric motors, motor controls, or cars in general. They know computers, software, and maybe communications.
How about running it in the winter? I bet the available power drops to a third, and if you want to get warm, well, better bring along a polar bear or your fat mother-in-law.
Applies for loan (age 22)
Waiting patiently and suffering from scoliosis (age 31)
I'm a patient man but Jeesh (age 47)
Maybe a few more sparks will remind them I'm still waiting (age 55)
Now I'm getting pissed...
Maybe they don't know I'm flat broke and staying at the New Yorker Hotel now!? (age 71)
Can anyone spare a bit of pigeon feed? (age 77)
Still waiting....
Ha! I guess you think you will find more people in Georgia or Alabama who can design these systems? LOL
Ok so even if I do agree that this is an absolute money pit that won’t net dollar one, I still think it would be cool to own one for my work commute, charge at home and never had to gas up again. In fact, I’d buy it if it were in the 20K range. Of course... if pigs could fly, right?
according to terms of the loan guarantee had to find a brownfield site – essentially a former factory it could retrofit — if it wanted to use the government’s guarantee. When it was unable to find an appropriate site in San Jose, it abandoned plans there and focused instead on the LA-area.
All the bay area congresscritters need to have their feet held to the fire on this one!!!! I mean, that is gov't cheese we BayAreasians should be getting! What's wrong with Nancy Pelosi? Darn!!!!
Even then they would only be useful for short commutes as long as the charging time is more than just a few minutes, which it is.
Too bad the same wasn’t required of Solyndra.
Even then they would only be useful for short commutes as long as the charging time is more than just a few minutes, which it is.
Not necessarily so. I believe the current Tesla plant was purchased from Toyota (former Nuumi plant), and they took on some former employees from the joint Toyota/GM car-building operations when it collapsed after GM abandoned it. Also, Silicon Valley is a hotbed of robotics research, that involves electric motor and control design.
Here's an idea. Allow taxpayers the choice, buy Obamacare or a Tesla. The more likely scenario is what Obama told of his plans for the coal industry; he will enlist the EPA and TSA to make regulations which will even the playing field. You will still be able to buy an internal combustion engine “...but the cost will necessarily skyrocket.”
Obama’s clear strategy to increase the cost of electrical energy production will simply make automobiles too expensive for the proletariat, which, according to most in the city planning business, should be forced to depend upon public transport.
What hasn't been mentioned yet is that anything funded by the government in California will use only union labor. What no engineers in our universities will be asked to do, particularly in California, is to calculate the environmental and energy costs of the whole fuel cycle for electric cars. Electric cars are generally not as efficient as our better internal combustion engines, particularly when most states, and California is typical, derive their electrical energy from burning coal. That California has other states burn the coal makes little difference - except the California environmentalists. California is more likely to require that the subsidized Tesla run on energy produced by subsidized wind turbines or subsidized solar panels, perhaps from Solyndra.
These are old crackpot ideas preserved and taught by Marxists like John Holdren, which serve the objective of destroying free enterprise.
Here's an idea. Allow taxpayers the choice, buy Obamacare or a Tesla. The more likely scenario is what Obama told of his plans for the coal industry; he will enlist the EPA and TSA to make regulations which will even the playing field. You will still be able to buy an internal combustion engine “...but the cost will necessarily skyrocket.”
Obama’s clear strategy to increase the cost of electrical energy production will simply make automobiles too expensive for the proletariat, which, according to most in the city planning business, should be forced to depend upon public transport.
What hasn't been mentioned yet is that anything funded by the government in California will use only union labor. What no engineers in our universities will be asked to do, particularly in California, is to calculate the environmental and energy costs of the whole fuel cycle for electric cars. Electric cars are generally not as efficient as our better internal combustion engines, particularly when most states, and California is typical, derive their electrical energy from burning coal. That California has other states burn the coal makes little difference - except the California environmentalists. California is more likely to require that the subsidized Tesla run on energy produced by subsidized wind turbines or subsidized solar panels, perhaps from Solyndra.
These are old crackpot ideas preserved and taught by Marxists like John Holdren, which serve the objective of destroying free enterprise.
How old is Tesla?
Have they ever actually produced a car for sale?
Sounds like deja vu all over again. Tesla is a stones throw from Solyndra. Less than a mile down the street. This was written in 2009 at this time Tesla produces no cars that are for sale. Say good bye to another $500 million taxpayers of America.
Interesting that Tesla’s $465 mill + Solyndra’s $535 mill add up to exactly $1 billion. Sounds like Pelosi insisted on $1 billion in Bay Area boondoggles.
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