Paul Chesser's blog

The Cult of Tesla Survives Another Round of Bad News

Elon Musk’s quarterly earnings reports for Tesla Motors always offer a little razzle, a little dazzle, soon-to-be-unfulfilled promises, and rationalized failures.

This go-round was no exception, and after yet another shortfall of financial and vehicle delivery expectations, perhaps the biggest surprise was the revelation that $1.3 billion in subsidies from Nevada taxpayers won’t be enough to get the hyped Gigafactory completed.

Brit Investment Company Gives Up on US Electric Truck Maker

Frito Lay Electric TruckA British investment company has thrown in the towel on an electric delivery truck manufacturer that it once wholly owned, saw fail, then spun off in the United States at the height of President Obama’s green energy stimulus subsidy mania.

Just In Time for Tesla's Latest Losses, Senate Wants to Waste More on EVs

Ernest MonizNothing of greater significance can be said about the Department of Energy’s Advanced Technology Vehicles Manufacturing loan program other than it was a wasteful failure. Nonetheless 85 U.S. Senators have determined that an additional, similar $1.6 billion program must be created, as part of a larger energy bill that passed last month.

Those who favored the extension of corporate welfare for alternative energy-fueled automobiles justified their decision with the same phony claims they made ten years ago when the ATVM program was established.

More Woes for Tesla from Consumer Reports

Elon Musk ModelSAs it continues to defy common sense and the laws of economics with its lofty stock price, Tesla has again shown it has little corporate competence in the ability to deliver a consistently functional product that satisfies customers.

The latest evidence comes in the recently rolled out Model X, which is allegedly an SUV, but looks like just another car. Retailing at a price only the extremely wealthy can afford ($138,000), the all-electric follow-up to the similarly troubled Model S automobile has stumbled out of the gate. The problems were outlined in a Consumer Reports article posted online Tuesday, which spurred a number of similar follow-up stories in other media, and temporarily caused Tesla’s stock to dip. Long-time followers of the company know that is only a temporary condition, however.

Apple, Google, Etc. Bully NC Over Restroom Access

A move by lawmakers in the state of North Carolina, which overturned a Charlotte ordinance that allowed individuals who claimed to be transgendered to use public rest rooms and shower facilities of their choosing, has drawn criticism from dozens of major corporations.

The City Council in February ordered that all public buildings, including schools, must permit persons to legally access rest rooms matching their gender “identity,” regardless of their biological sex. Even more tyrannical, the government decreed that all private businesses must make the same accommodations. As a result, the North Carolina General Assembly called a special session to pre-empt the April 1 implementation of the Charlotte ordinance, while at the same time allowing for businesses and local agencies to determine their own policies free and independent from the diktat.

Super-Subsidized Tesla's Stock Suffers Precipitous Drop

Tesla logoWall Street, media and government darling Tesla Motors has seen its stock price nearly halved from seven months ago. For so long it has seemed that ongoing bad news never had an effect on the heavily subsidized upstart, but now perhaps the Teflon is eroding off CEO Elon Musk.

The precipitous, rapid descent preceded last week’s horrid earnings report. USA Today helped smear lipstick on the pig, cheerily noting shares rose “14 percent at one point” after its earnings “miss” on Wednesday, because Musk delivered investors a "rosy outlook for the rest of 2016." This was in context of what the newspaper characterized as a “whopping loss” that “badly missed estimates.”

Google's Solar Ally Admits Power Has Zero Dependability

Google logoThe influx of giant technology companies into North Carolina to build artificially “green and clean” data centers, which they say are powered by their nearby solar farms, has led to a revelation that discredits their claims.

The stunning admission: that electricity derived from solar sources is thoroughly unreliable.

The information was unearthed in a report last week by Carolina Journal, a publication of the conservative John Locke Foundation. In a filing with the state’s Utilities Commission, a solar company affiliated with Google reported that the trustworthiness of the energy produced by its proposed facility would be non-existent.

US Taxpayers Hold Largest Debt in Troubled Spanish Solar Company

AbengoaA foreign renewable energy company, that U.S. taxpayers hold a major stake in via the Department of Energy Loan Program Office, is imperiled by massive debt and has begun the process of negotiating with its creditors as a prelude to possible bankruptcy.

The company is Abengoa, based in Spain, which reportedly holds 887 subsidiaries around the world. Reuters reported at the end of last month that investors declined to provide needed capital for the firm, which led to what is called, under Spanish law, “pre-insolvency proceedings.” That entails a four-month attempt to alleviate debt burdens. If that falls short, then formal bankruptcy proceedings would likely follow, which would be Spain’s largest in history. Effects would ripple globally.

Electric Vehicle Sales Plummet Without Taxpayer Subsidy

Nissan Leaf photoFor years NLPC has reported that the “market” for electric vehicles was anything but free and competitive against traditional gasoline-fueled automobiles. Instead it is “all hype and subsidies.”

The evidence could not be any clearer than what has happened in Atlanta. As Watchdog.org has reported, since a $5,000 state tax credit expired on July 1, sales of “zero-emission” electrics such as the Nissan Leaf have plummeted. Whereas monthly sales averaged 915 in 2015 until the year’s midpoint, sales in the month of August fell to 148, according to vehicle registration data compiled by R.L. Polk & Co.

Chinese Said To Turn Obama's Stimulus Lemons Into Lemonade

Jason ForcierOne of the stimulus-funded alternative energy companies that National Legal and Policy Center reported about most the last few years was A123 Systems, which the Department of Energy awarded $279 million to crank out special batteries for electric vehicles.

The examples of government failures in picking successes in industries and economies are countless, with President Obama’s plan for subsidies of a million electric cars on U.S. roads by 2015 serving as Exhibit One. He was only off by several hundred thousand.

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