Quote:
Originally Posted by jamesqf
Every new technology starts out as luxury products for the rich. Consider automobiles a century ago...
And I'll agree with the "throwing tax dollars" part, if you make it a general principle. However, if those dollars are going to be thrown somewhere (and it seems that in the current political climate they are), I would much rather see them thrown at companies like Tesla and Aptera, than at say GM.
Which, BTW, also makes luxury products for the rich. Financially, for me there would not be that much difference between say a new Escalade or (a couple of years ago) a Hummer and a Tesla, and the Tesla would be far more suited to my usual driving.
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I do indeed oppose throwing money at GM and Chrysler as well. In fact, I will go a step further and
add Nissan and Ford to the list. Far better for those companies (or their EV programs) to sink or swim on their own, and if they can't make it, let other companies absorb their facilities -- it ultimately would have been healthier for our auto industry and our country's economy. Certainly, I will not be purchasing a vehicle from those companies in the future, as they've already received enough of my money. And in Chrysler's case, this is the second bailout they've received in my lifetime.
It is indeed true that many items that started as luxuries eventually lowered in price and became commonplace for all. The reason these products are priced so high initially is so the company can recoup its initial startup investments. But by going begging to Washington, Tesla is effectively admitting that they can't charge a price that the market will support for their products and still make money. That says to me that the product cannot succeed, at least not in the current state of the market.
And while I do like the concept of EVs, (and hell yeah, as a car guy, it would be cool to have a Tesla in my garage,) the truth is by having the government pick and choose 'winners' like this, we are diverting money toward products that apparently aren't commercially sustainable for the time being. And that is money diverted
away from automotive products that would be far more commercially sustainable as 'transitional' products - like diesel or CNG vehicles.
So there is more than one reason that I find the above story upsetting. But I think I hold Tesla in especial contempt because it seems to be even more badly-run than even GM, because their entire strategy appears to be looking for some next sucker to squeeze for their next cash infusion, and the company is run by a guy who (to me) seems to be more of a carnival barker than a serious businessman.
(As an aside - although I come to bury these corporate welfare queens, and not praise them, at least GM, Ford, Nissan, and Chrysler all make cars that are priced within the reach of the average American.)
EDIT: Just to make it clear - I completely understand/respect your position as well, and don't want to come off as being overly harsh (I think sometimes I unintentionally can come off that way.) I just wanted to make sure I had aired exactly why I think throwing cash at Tesla in the long run, isn't for the best....