Are Tesla and Fisker Too Small to Succeed?
Is the Obama Administration misspending the government’s money on startups such as Tesla Motors and Fisker Automotive? That’s the contention of an October 12 BusinessWeek article, which quotes longtime analyst Maryann Keller as saying, “We’re pouring $1 billion into two companies without a future. The economics of the industry favors large companies.” Of $8.5 billion in Department of Energy loans to automakers so far to build new green-themed plants, $465 million went to Tesla for work on its Model S sedan and, more recently, $528 million to Fisker Automotive for final design work on its $89,000 Karma luxury plug-in hybrid and for its more affordable Project Nina car. The total Advanced Technology Vehicles Manufacturing Loan fund is $25 billion, so much of…
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