By: pvolcko On: Sun Jun 28, 2009 1:44 pm
I think they got it on the promise of moving their tech into a new sedan they've been trying to get through R&D and production, but haven't been able to for lack of funds. Doesn't mean that the government should be giving out loans like this, picking the winners and losers of the green tech industry. I'm quite against it. However, that is most likely the reason, along with some strong political connections through Silicon Valley private investors and the possible desire for people in the government wanting to appear to be fair while they rig the game.
I'm quite surprised by the figure though, half a billion dollars in government loans. Saving political face could have cost a hell of a lot less. And even if the powers that be honestly wanted Tesla to get their sedan to market, half a billion seems like an awful lot of money for that purpose. Maybe they're thinking Tesla will be able to absorb some of the dealerships that GM and Chrysler just axed and build up a serious retail and distribution chain? Still is a crazy long shot given that the government is pumping billions upon billions into the big automakers and has forced them to dive headlong into the same exact market that Tesla has been toiling in for years now.
Their market advantage over Tesla is gigantic, which leaves Tesla with only a couple options. One, get the sedan off the ground, but focus big time on production and retailing of the existing car. Build their brand and market while the bigs are scrambling and developing their first products. Try to get the sedan to retail before the bigs get their first products out the door. Sell, sell, sell. Two, eschew the sedan and the idea of ever becoming a mainstream car producer. Instead focus on becoming the Ferrari of electric vehicles. Fast, high performance, low to moderate endurance, fast. Pour R&D into design, aerodynamics, and a few key drive train technologies (battery storage and recharge/discharge rate, power handling and control systems, cooling systems, etc.). Keep retailing relatively small and focused on high dollar earner locales, but put international presence very high on the list of priorities. Build a world class exotic car brand. Get into some major racing circuits or create one if need be.