So many EV startups on the horizon ... so many vapor wares: http://www.nytimes.com/2008/10/16/technology/start-ups/16tesla.html?_r=1&th&emc=th&oref=slogin Will the bad economy undo what high fuel prices has helped? I hope not.
They were in the process of raising money for their planned San Jose factory. Now with the credit crisis, even blue-chip companies cannot get loans. I don't know why they fired Martin Eberhard, but I doubt that has anything to do with their present problems. As for the article's mention of the Chevy Volt as competition to the Tesla S, that's a laugh. The S will be a $60,000 sporty sedan, which will compete with the likes of BMW and Jaguar. The Volt is an advertising campaign for a $15,000 car with a $45,000 price tag that will probably never be built anyway. Yes, the financial melt-down will set back environmental progress as companies wanting to invest in sustainable energy will be unable to get either equity investments or loans. Risk-averse investors will shy away from start-up companies, which are always riskier than established ones. The financial criminals have done damage that will have far-reaching effects throughout the economy.
Sadly, they are NOT financial criminals for the most part. Legislation enables the people who run finance. Legislators (both parties) knew exactly the risk of the laws they enact. Those are the criminals. Equally sad, those who finance high risk companies often won't lay out big capitol unless a there's a liklihood of quick return. Little is done now days in our country (and many other countries are even worse) for the long haul ... whether it's financial investing, transportation, raising kids, etc. We, the 'me' generation now learn a new term. Consequences.
Many of the dealings that led to the present financial melt-down were illegal. Thus criminal. Many more of the dealings were so clearly Ponzie-type schemes (involving derivatives, and mortgages to people who openly admitted they had no way to pay them off) that the financiers who participated in them should have known they could not work, and were therefore criminal in the figurative sense. There is an analogous case in criminal law: Everything the Nazis did was legal under German law at the time, but the Nuremberg Tribunal ruled that the acts were so heinous that they should have known they were abominations. While the depravity of the Nazis dwarfs anything in our financial crisis, the Ponzie derivatives scheme was so obviously fraudulent that the financiers should have known they were commiting fraud. And fraud is illegal even if it is done in a manner not specifically mentioned in the law. As for Tesla, it is well capitalized by far-sighted investors committed to electric transportation. But credit is necessary to any free-market business, and small start-up companies are more susceptible to market failures than big ones. The lay-offs at Tesla are very sad, but Tesla is not responsible, and I believe they'll pull through if the economy does not totally crash and burn. Knock on wood!
I am glad you mentioned Ponzie scheme. Your definitions almost exactly define the current Social Security System. It will run out of money soon. This one is purely a government program.
And this has what to do with "Tesla Falls on Hard Times"??? I was explaining why Tesla is feeling a crunch right now, through no fault of their own. Social security belongs in its own thread, and if FHOP does not have a suitable thread, you can start one. Please keep the Tesla forum to discussions about Tesla.
My concerrn for Tesla's whitestar is that the "one/two" - bad economy punch may not only choke off investment capitol, but when sluggish times bring down high fuel costs, and then you couple this mix with already expensive EV technology, it's going to likely have a strong impact on development.
Sorry to hear about this as Tesla is headquartered about 25 miles West of here. I hope they pull through and stabilize soon.
The Tesla Whitestar, at $60,000, is not aimed at buyers trying to save money on gasoline. It will be a luxury sporty sedan aimed at (pardon the expression) the yuppy crowd with money to spend and wanting to make a statement with an electric car. It will also be available with a choice of power trains: all electric or range-extended EV along the lines of the Volt. Not until Bluestar will Tesla take aim at the family sedan market where the price of gas becomes an incentive to buyers. And by then, rest assured the price of gas will be in the clouds. The bigger issue is when (or if!) the economy will recover enough that small companies can get credit again.
Elon Musk is driven - he's the Howard Hughes of Electric Cars - don't underestimate him. Tesla will find it's way.
