Subject: Letter-to-the-Editor re: Government Support of Tesla Motors
Date: Tue, 29 Jun 2010 12:03:48 -0400
Re: Tesla IPO
Your article about the upcoming Tesla Motors IPO illustrates beautifully how our government gambles with the peoples' money. The government has "loaned" Tesla $465 million. I put the word "loan" in parentheses, because this is not a real loan. Undoubtedly the rate is below market, but there is no way of knowing, because there is no loan market for Tesla Motors. No bank board of directors would ever approve such a loan of its depositors' money. The article speaks for itself--Tesla has lost $290.2 million since it was founded in 2003. It has produced a grand total of one thousand cars, priced at over $100,000 a piece. Its current car has minimal range and few places where it can be recharged. By the time Tesla rolls out its next model, the big players such as Nissan will be offering all-electric cars at a fraction of Tesla's price. But how can there be a significant market for an all-electric car when nowhere can one find out its electricity cost per mile? And where will America get the power? The government, via the EPA, is making it almost impossible for America's utility companies to add electricity production. In fact, some current coal-fired power plants are threatened with closure. Nevertheless, the government is pushing this technology and trying to lure buyers by granting tax credits to purchasers of all-electric cars. But, there's a sucker born every minute. So, if you loved the DeLorean, you'll probably buy a Tesla.