electric vehicles

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.

Consumer Reports Rescinds Recommendation for Tesla's Model S

Tesla logoImagine 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.

Chinese Swoop in on Taxpayer-Subsidized Electric Truck Maker

Smith Electric logoThe painful and fruitless existence of Smith Electric Vehicles, waster of $32 million in U.S. taxpayer funds, has been extended after yet another near bankruptcy.

The Kansas City electric delivery truck manufacturer, whose actual business negotiates in government grants, tax breaks and other subsidies – rather than a product anyone actually wants to pay for – had announced at the end of September, via its British investor Tanfield Group, that it needed to raise $4.5 million by October 2nd and $10 million by the end of the month. Without the cash infusion, Tanfield said, “the company is likely to be forced to seek protection under US bankruptcy laws or close down its operations.”

Electric Truck Company Looks Like Next Stimulus-Funded Bankruptcy

Frito Lay Electric TruckAn electric truck manufacturer that was awarded $32 million from President Obama’s stimulus program has informed one of its investors that it is on the verge of bankruptcy, if it did not raise $4.5 million by Friday and $10 million by the end of October.

The troubled saga of Smith Electric Vehicles should be particularly sickening for taxpayers because it sprouted out of a similar failed company, of the same name, in Great Britain. Smith, as part of the U.K.-based Tanfield Group, stumbled out of Europe and re-established itself in Kansas City – opportunistically at the time that President Obama was rolling out his plans to “stimulate” the “green” energy sector in early 2009.

Lawsuit: Transportation Secretary Foxx Had 'No-Show' Job at Bankrupt Busmaker

Anthony FoxxAllegations in civil lawsuit threatens to mar the reputation of Secretary of Transportation Anthony Foxx (Flickr Photo: MTyndall).

He has been sued in the case of defunct DesignLine USA. The Charlotte-based hybrid electric bus-maker declared bankruptcy in 2013 after years of missteps that included maintenance problems, production problems, missed deliveries, lawsuits, and an FBI investigation. Its assets were sold to an investment group and the company now operates with a much lower profile, under the name EPV Corp.

Tesla Sells More Shares After Latest Production Shortcomings

Tesla logoElon 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.

Tesla, Nissan Take Financial Hits as States Remove EV Subsidies

Elon Musk ModelSIt’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.

Alcoa Gets First Loan From Energy Dept. Program— But Doesn't Need It

Ernest MonizA stimulus-backed Department of Energy loan program that has not been tapped for four years, and was deemed unwanted two years ago by the Government Accountability Office, is suddenly ready and willing to dole out more taxpayer millions again – to a corporation that doesn’t need it.

In fact, Alcoa’s expansion project for which the funding is targeted – to produce special aluminum for automotive companies in Tennessee – has already been underway for 19 months and was first revealed almost two years ago.

Apple Accused of Poaching Chinese Know-How Paid for by US Taxpayers

Lu GuanqiuSince 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.

Bad Earnings and Subsidy Controversy Hound Musk, Tesla

Elon Musk ModelSLast time NLPC checked on Tesla Motors – as 2014 closed – we noted a growing skepticism largely due to CEO Elon Musk’s consistent habit of overpromising production and results, without delivering.

Then ten days ago he reported year-end earnings, and matters have worsened, although you wouldn’t know it from most of the undeterred “rah-rah” media and Wall Street fanboys. But there are exceptions.

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