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Tesla Joins List of Car Companies Begging for Cash
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Tesla, who looked so promising not very long ago with its Elise-based Tesla Roadster, is now among the car companies lobbying for federal funding to stay alive. Autocar reports that Tesla is rumored to have requested $400 million from the U.S. energy department to fund two projects, "the details of which have not been disclosed."
It seemed only moments ago that Tesla was just months away from mass production, profitability, and a promising future. Then its CEO bailed, employees were laid off, and its best-laid plans were rent asunder by a nasty market. Tesla also lost a lawsuit with Fisker Automotive, which certainly didn't help their business.
Tesla's new CEO, Elon Musk of PayPal, boldly claimed that its upcoming electric sedan "will crush everything out there" in recent headlines. Alas, it looks as though plans for that sedan are probably scratched as Tesla is crushed by a brutal market.--Colin Mathews
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It seemed only moments ago that Tesla was just months away from mass production, profitability, and a promising future. Then its CEO bailed, employees were laid off, and its best-laid plans were rent asunder by a nasty market. Tesla also lost a lawsuit with Fisker Automotive, which certainly didn't help their business.
Tesla's new CEO, Elon Musk of PayPal, boldly claimed that its upcoming electric sedan "will crush everything out there" in recent headlines. Alas, it looks as though plans for that sedan are probably scratched as Tesla is crushed by a brutal market.--Colin Mathews
---
Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
Responses (2 total)
By Reece | Posted: Nov 25th 2008, 11:31:05 PM
Anyone remember Delorean, not the car but the company. It was a fraud to lure investors and the Goevrnment of Northern Ireland to give money. Tesla has the same ring about it. Burn through investors cash then Government cash. As bad as Gm et al are they are at least real (if very sick) companies, Tesla just doesn't smell right. Not sure the founder will be caught with a suitcase full of cocaine but don't expect this to end well.
By John V | Posted: Nov 22nd 2008, 05:51:43 PM
I believe the funding Tesla applied for is not part of the current "bailout" discussions for the Detroit Three, but from earlier moneys allocated by the Dept of Energy for advanced drivetrain R&D and/or production.
Not sure of the details, but I think you're conflating two different pools of government dollars.
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