Climate Depot’s Morano on Fox News on October 12, 2012 to discuss electric cars and Tesla.
The DOE Restructured Its Loan to Tesla: ‘Imagine that. Weeks to go before the election and the Department of Energy has restructured its $465 million loan to the electric-car company to make sure it didn’t run out of cash. The New York Times reports: (Emphasis mine)
As it ramps up sales of its sleek electric sedan, Tesla doesn’t appear to be much of a loser right now. But a closer look at company’s cash flows suggests it is hardly out of the woods…The federal government eased terms of its $465 million loan to Tesla to ensure the company didn’t breach key financial hurdles. The company then raised $193 million in a secondary stock offering, easing cash concerns… Tesla’s CEO has said he raised the $193 million “simply for risk reduction.” Yeah. It’s called the risk to Obama of Tesla running out of cash right before the election.’
Taxpayers Subsidize Forbes ‘Green’ Billionaires’ Schemes: Musk, best known as co-founder of the company that became PayPal, is Chairman of SolarCity and CEO of Tesla. According to the Center for Responsive Politics, SolarCity spent $535,000 in 2009 and 2010 to lobby Congress and the Department of Energy on climate legislation, the Recovery Act, “green workforce training and development,” and provisions in various legislation “relevant to solar development.”… So far, according to DOE reports, SolarCity has received more than $66 million from that program. The company also won a partial guarantee from DOE of a $344 million loan that will place up to 160,000 rooftop solar installations on military housing across the country. Similarly, Musk’s Tesla Motors spent $480,000 from 2007 to 2011 to lobby Congress, the White House, EPA and DOE on climate and energy issues, the Advanced Technology Vehicles Manufacturing loan program, the Promoting Electric Vehicles Act, and the Recovery Act. Tesla receiveda $465 million loan guarantee from DOE’s ATVM program. Musk is also a generous political donor, mostly to Democrats, although his investments and giving are equally diverse.
Climate Depot’s report: Electric/Hybrid car industry loses power in the face of market reality and lack of consumer demand — Washington Post on Chevy Volt: ‘The basic theory— if you build them, customers will come — was a myth. And an expensive one, at that’
Tesla is fine, repaying U.S. government loans: CEO: Tesla Motors Inc (TSLA.O) Chief Executive Elon Musk dismissed fears the electric carmaker was in financial trouble and said it was making an advance payment on the federal loan used to make its Model S sedan.
How Does Paying $40,000 For A Tesla EV Replacement Battery Sound? ‘The Tesla electric car’s batteries will cost $40,000 to replace when they run out of juice – how appealing are those electric car advantages at resale time? The Tesla electric car is produced by a company run by a whiny corporate billionaire and taxpayer welfare mooch – to the tune of $450 million in U.S. taxpayer loans provided by Obama. What did Obama see in the company? Great question, and btw, don’t expect the loan to be repaid, ever.
Who killed the electric car? You, perhaps, if you didn’t charge it: ‘DON’T leave your electric car parked for too long – by the time you get back it could have turned into a $200,000 brick. Electric car maker Tesla is defending claims its cars become immobilized if the battery ever becomes completely discharged. This results in a battery replacement cost of about one-fifth the car’s $206,000 sticker price.’
Oops. Major Design Flaw Found With Tesla Electric Cars: ‘Sounds like another $500 million down Obama’s taxpayer-funded toilet’
“It’s A Brick” – Tesla Motors’ Design Problem Devastating: “Tesla Motors’ lineup of all-electric vehicles — its existing Roadster, almost certainly its impending Model S, and possibly its future Model X — apparently suffer from a severe limitation that can largely destroy the value of the vehicle. If the battery is ever totally discharged, the owner is left with what Tesla describes as a “brick”: a completely immobile vehicle that cannot be started or even pushed down the street. The only known remedy is for the owner to pay Tesla approximately $40,000 to replace the entire battery. Unlike practically every other modern car problem, neither Tesla’s warranty nor typical car insurance policies provide any protection from this major financial loss. ”
More on the Electric Edsel: ‘It is 1890 and horse travel is becoming problematic. The horses poo all over the place, making a disgusting mess in crowded urban areas – and they’re just not practical for speedy, efficient travel in a rapidly industrializing nation. Did the government start throwing billions (well, millions in those days) at politically connected big businesses to develop an alternative? The answer, of course, is no. Inventors thought about the problem and tinkered. The internal combustion engine (gas and diesel) was invented – and perfected. It became reliable – and soon, affordable. Henry Ford and others like him came along. Cars replaced horses. And – a key fact – impractical cars such as the early steam-powered and electric cars – were dropped in favor of practical cars like the Model T, which put the country (not just the elites) behind the wheel.
The analysts at Green Car Reports, “the ultimate guide to cleaner, greener driving,” worry that the Fisker Karma may discredit the entire Department of Energy loan program.
Elon Musk, a tycoon who has reaped millions of dollars from government for schemes for EVs, solar and outer space, may feel good about Tesla compared to Fisker for the moment, but in the Automobile interview he revealed massive problems in management and development while he planned to seek those loans from the Department of Energy.