Elon Musk

GAO: Bad Publicity Scaring Prospects Away from Stimulus Money

Submitted by Paul Chesser on Thu, 03/28/2013 - 14:05

MoneyThe publicity surrounding President Obama’s failed strategy to stimulate the economy, by putting clueless manager Steven Chu in charge of the Department of Energy’s lending activities, has become so bad that few “green energy economy” entrepreneurs want to accept taxpayer money any more.

That’s according to a report published earlier this month by the Government Accountability Office, which reviewed DOE’s loan programs for a briefing to both the House and Senate’s Appropriations subcommittees on Energy. Amusingly though, the Web site of DOE’s Loan Programs Office still calls itself “The Financing Force Behind America’s Clean Energy Economy.” The minor blip that undermines that premise is that DOE is having trouble getting someone to borrow $55 billion.

Henrik Fisker Quits as Chairman of His Own Company

Submitted by Paul Chesser on Thu, 03/14/2013 - 12:09

Fisker logoIn the end, even Al Gore, Leonardo DiCaprio, Justin Bieber, Jay Leno, former Chrysler and General Motors execs, billionaire Silicon Valley venture capitalists, generous California government incentive givers, Delaware subsidizers, and President Obama’s Department of Energy investment arm couldn’t overcome the dud that was the $102,000-plus Fisker Karma.

And now as the company desperately seeks for cash and/or a rescuer – probably in China – a disagreement arose between Fisker’s founder and its top management. So the man for whom the company was named, Henrik Fisker, quit. The Los Angeles Times and dozens of other outlets reported yesterday that Mr. Fisker left over disputes about “direction” for the company, citing “several major disagreements.”

Tesla CEO Elon Musk Fights Perceptions as Stock Drops

Submitted by Paul Chesser on Tue, 02/26/2013 - 06:20

Elon MuskTaxpayer-supported Tesla, recipient of a $465 million stimulus loan guarantee to produce yet another electric toy car (the Model S) for rich people, reported its 4th quarter earnings last week. The word from billionaire CEO Elon Musk (Flickr photo: Jurvetson) was, “we’ll do better next quarter – promise.”

That’s a paraphrase, but nonetheless Tesla’s announcement fell short of most Wall Street analysts’ expectations. The company lost $90 million for the quarter as it ramped up production to fill pre-orders, paying workers to put in an average of 68 hours per week in December. On Thursday the company suffered the biggest one-day drop in its stock price – tumbling nearly 10 percent – in more than a year. Shares fell to $35.16 before recovering slightly on Friday, but were at $34.38 for Tuesday morning's opening.

Taxpayer Millions, Lithium Ion and Rich People Just Don't Mix Well

Submitted by Paul Chesser on Tue, 02/12/2013 - 10:58

Elon MuskUndoubtedly alternative energy and transportation innovator Elon Musk (Flickr photo: Jurvetson) – like his competitor for the taxpayer-funded, six-figure electric automobile market Henrik Fisker – is a smart guy. But will economic and technological realities humble him, or worse, make him look like a fool?

After the experience recounted last week by New York Times journalist John Broder, who test drove the Tesla Model S in frigid conditions that required frequent unplanned recharging stops throughout the Northeast, humility is out of the question for Musk. The jury is still out on inanity.

Timeline: A123 Systems' Downward Spiral to Bankruptcy

Submitted by Paul Chesser on Tue, 10/16/2012 - 13:47

A123 logoAs Bloomberg reported today, stimulus-funded electric vehicle battery maker A123 Systems filed bankruptcy in federal court after failing to make a debt payment that was due. Milwaukee Business Times has reported that Johnson Controls will purchase the “automotive business assets” of A123 for $125 million, and that A123 will receive from Johnson $72.5 million in “debtor in possession” financing to continue operating during the sale process.

Regular readers won’t be surprised, as the company’s gradual sink to its current depths – despite receiving hundreds of millions of dollars from taxpayers – has been covered by NLPC since late last year. A review:

Fisker Recalls Karma; EV Maker Blasted by Rival Elon Musk

Submitted by Paul Chesser on Mon, 08/20/2012 - 11:12

A123 logoThe electric vehicle fire in Woodside, Calif. about a week ago has led to the third recall in the short life of taxpayer-subsidized ($193 million in stimulus) Fisker Automotive and its plug-in hybrid model, the Karma.

The first two recalls were caused by problems with batteries produced by Fisker’s similarly troubled supplier and business partner, A123 Systems. The company said this time the fire was caused by a failure in a cooling fan, which caused overheating while the vehicle’s owner shopped for groceries inside a store. About 2,400 Karmas – 1,400 of which are in the possession of customers – will need to be recalled.

Taxpayer-Backed Yet Cash-Poor A123 Stock Hits All-Time Low

Submitted by Paul Chesser on Wed, 07/18/2012 - 20:07

A123 logoA week and a half ago cash-poor A123 Systems, recipient of $279 million-plus in federal money and millions more from the State of Michigan, announced it would access $39 million via a stock sale to institutional investors and the release of other cash after meeting requirements related to its existing reserves.

It has been downhill ever since – all the way down to its all-time low of 75 cents per share price Tuesday (and 69 cents Thursday morning). It may be too much for even these masters of the press release cycle to overcome by creating good news out of thin air.

Yet Another DOE Green Failure as Abound Solar Goes Bankrupt

Submitted by Paul Chesser on Fri, 06/29/2012 - 10:05

Abound logoThe next time a green energy company announces it is intentionally slowing down for a transition phase, or that a technology breakthrough is just around the corner, or that all that’s needed for future success is just a little more taxpayer “investment” – don’t believe it. It's likely a lie.

Syndicate content