I've been following the news about the Tesla Electric Car - the start-up electric car manufacturer for which Daimler reportedly paid $50 Million to buy a 10% stake.
Today I read on CNNMoney.com that the Fed is loaning Tesla $456 Million to build its electric car.
"The Obama Administration will lend Tesla Motors $465 million to build an electric sedan and the battery packs needed to propel it. It's one of three loans totaling almost $8 billion that the Department of Energy awarded Tuesday to spur the development of fuel-efficient vehicles."
This is great news for American entrepreneurs .... the most efficient car in the world can be mass produced in America.
The sad thing is General Motors could have been way ahead in this business if they hadn't killed the electric car years ago.
"We are honored to receive one of the first loan awards in this program," company CEO Elon Musk said. "I'm confident we'll put the money to very productive use. We look forward to producing the Model S."
Stewart, well said, "The sad thing is General Motors could have been way ahead in this business if they hadn't killed the electric car years ago."
I am convinced that the reason more companies and individuals don't succeed is because they don't go far enough.
Great.
At least there's SOME sort of movement to get electric cars going.
I'm curious as to what price point this car will end up being. If it's Tesla, my guess is that it's going to be a high price ticket.
Tesla is probable the company that can do it. Now all we need is more nuclear plants to recharge the thing.
I was so excited about the car until the government jumped in. We all know that there are major strings on that deal. That just blows my mind that they would take the money after seeing what the government has done over the past few months. Hopefully, they will find a private source to get them out of that trap.
As part of this same action they also gave $5+ billion to Ford and $1+billion to Nissan. I like the investment in Tesla and Ford, I just don't understand the Feds investing in a Japanese company when Japan is already doing that. Doesn't seem like the right place for our tax dollars.
I saw one in a parade a couple of weeks ago. Amazingly fast and quiet. It squirted when he romped on it. The only thing missing was the rumble or scream of the engine that one would expect for such incredible accelleration. Regarding the investment - at least they are giving money for technology and not to pay overpaid workers to take over the company.
July 14, 2009 - UPDATE on TESLA
Two months after Daimler AG purchased a 10% equity stake in Tesla Motors, Daimler has sold 40% of its holding to Abu Dhabi's Aabar Investments.