Friday, December 24, 2010

Tesla Wants $400 Million Bailout Loan - Anyone Else?

Everyone wants a piece of the (bailout) pie; even tiny Tesla Motors. The Associate Press reported that the Silicon Valley-based electric car joined Detroit's Big Three automakers in their bid to get a $25 billion government aid. Tesla was said to have applied for about $400 million in no to low-interest loans to fund two projects, details of which weren't revealed. But unfortunately for Tesla, GM, Ford and Chrysler LLC failed spectacularly to make a convincing case for the $25 billion bailout with the Congress telling them to return in December with a viable turnaround plan - click here for more details.
And while one could somewhat justify bailing out the Big Three to preserve jobs and help the U.S. economy from falling into a deeper recession, what's the big deal if Tesla goes bankrupt? We're talking about a small company that builds one limited production sportscar -the Roadster- and which might make another one in a few years time - the 4-door sedan Model-S. So what?
Via: TTAC , Source: Mlive / Associated Press

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