Nothing 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.
“Our measure will help manufacturers and suppliers research and develop innovative technologies to make the next generation of fuel-efficient vehicles, spurring job growth and reducing our dependence on foreign oil,” said Democrat Sen. Debbie Stabenow of Michigan.
NLPC has documented the stumbles of the stimulus-fueled ATVM program – which still has $16 billion available – extensively. Two of its loan recipients, Fisker Automotive…
As 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.
Nonetheless those who actually own a Model X – as opposed to those who own a certificate of …
For 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.
“It was essentially taking money that would have been paid into taxes in Georgia and a subset of people were getting their car paid for,” said state Rep. Chuck Martin, a Republican, to Watchdog.org.
The steep drop was expected after the tax credit expired, but gasoline prices that are approaching $2 per …
One 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.
But that doesn’t mean that vultures can’t consume the carcasses left behind, which is exactly what the Chinese did with A123. As Bloomberg reported last week, the multinational automotive parts corporation Wanxiang Group is running the company to try to meet market demands and is “having better luck.”
Whether “fortune” is leading A123 to an ultimately healthier place is still undetermined, but Wanxiang …
Imagine a product that performs so well, that an evaluator says it busted through the top of its grade scale, yet that same scorer can’t recommend the product due to issues of reliability.
That would be a seeming disconnect in the real world, but in this case we are talking about the immortal Tesla Model S. The illogical appraiser is Consumer Reports.
Two years ago the media enthusiastically reported how the all-electric luxury vehicle scored a 99 out of 100, as measured by conscientious buyers’ favorite magazine. Then, two months ago, CR’s researchers were even more ecstatic after their follow-up tests, and awarded the Model S a score of 103. Green-minded journalists were over the moon.
“This is a glimpse into what we can expect down the line, where we have cars with the performance of supercars and the comfort, convenience and safety features of a luxury …
Elon Musk still hasn’t given up his quarterly earnings schtick – in which he glosses over ongoing failures and points to his latest tech idea (which is not really new) – and why should he? No reason to quit until it’s clear Wall Street has stopped worshiping.
Oh, sure, after another dismal performance (operating loss of $47 million) for Tesla Motors during the most recent quarter, its stock price took an immediate dive of 9-10 percent. But while that merely returned the electric automaker back to irrational exuberance territory – as compared to the drunken sailor highs it has enjoyed in recent months – it didn’t take long for some market analyst to restore the inflation.
Regardless, last week cast more doubt on Tesla’s condition. After Reuters reported that the company loses more than $4,000 per Model S it markets and sells, the electric automaker announced it would …
It’s been six years since electric vehicle manufacturers enjoyed their windfall from U.S. taxpayers via the stimulus, but the thirst for subsidies, and pain from financial losses, have not waned.
The pursuit of government goodies continues apace for Tesla Motors, even more vigorously after the Los Angeles Times reported last month that CEO Elon Musk depends on more than $4.9 billion in corporate welfare for his companies, which also include SolarCity and SpaceX.
Tesla’s quest may more accurately be portrayed as preservation of the golden goose that is California’s zero-emission vehicle (ZEV) credit scheme. The Golden State requires the six largest auto manufacturers to produce a certain percentage of vehicles that are “green” – in other words, electric – or to purchase zero-emission “credits” from companies that do, such as Tesla. According to the Christian Science Monitor, Tesla is the largest seller of ZEV credits, …
Since 2011 NLPC has tracked the stimulus-funded fiascoes that were/are battery-maker A123 Systems and luxury electric automaker Fisker Automotive, who at one point were business partners (or stuck with each other, depending on your perspective). Both eventually went bankrupt, and cost taxpayers millions of dollars from Department of Energy awards that were never paid back. Chinese company Wanxiang Group ended up with both failed enterprises, buying their assets for cheap.
While the Obama administration declared the two bankruptcies (among others, such as Solyndra) part of their “successful” green energy investment strategy, two Republican Senators – Charles Grassley of Iowa and John Thune of South Dakota – have applied pressure to DOE over the fate of American jobs and intellectual property created by A123 and Fisker, but paid for with U.S. tax dollars.
Now, as the Senators continue to express concern about DOE policy over innovations …
It’s been another year of unwarranted enthusiasm for Tesla Motors and CEO Elon Musk, who parlayed that exuberance for his unprofitable company into a $1.3 billion incentives package from the state of Nevada.
But despite that legislatively unanimous award from three months ago, and a stock price that has flown high for most of the year, there are signs that the shine over the luxury electric automaker is beginning to dull.
Perhaps the most noteworthy skepticism has arisen from popular automotive Web site Jalopnik, which otherwise has been a fairly reliable (but not robotically so) cheerleader for Tesla. An end-of-year article written by blogger Damon Lavrinc recounts the automaker’s legacy of non-fulfillment and asks, “What will Tesla and Elon Musk over-promise next?”
“So where are those battery-swapping stations Tesla promised?” Lavrinc wonders. “Or its big push into the energy storage biz? Didn’t we hear something about the …
Reuters sources inside Nissan are saying the production of batteries in Tennessee for the all-electric Leaf, which stimulus-subsidizing U.S. taxpayers backed with a $1.4 billion loan, could be eliminated.
According to the report, at minimum there is sharp debate over whether the company will continue to manufacture electric vehicle batteries in-house or contract with an outside supplier. Nissan partner Renault, which has 43.4 percent shareholder ownership in the joint company, is said to be pushing for outsourcing battery production – possibly to LG Chem. None who revealed the information were identified for the Reuters story.
“We set out to be a leader in battery manufacturing but it turned out to be less competitive than we’d wanted,” said a Nissan executive to Reuters, on condition of anonymity. “We’re still between six months and a year behind LG in price-performance terms.”
If they’re really thinking about a move …