Tesla CEO Elon Musk Fights Perceptions as Stock Drops

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.

Unlike its counterpart Fisker, Musk and Tesla have enjoyed comparatively better …

Fisker Recalls Karma; EV Maker Blasted by Rival Elon Musk

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.

“We are committed to responding swiftly and decisively to events such as this to ensure total customer satisfaction,” said executive chairman Henrik Fisker. “This incident resulted from a single, faulty component, not our unique EVer powertrain or the engineering of the Karma. As …

Taxpayers Subsidize Forbes ‘Green’ Billionaires’ Schemes

Vinod Khosla

This story has been updated below.

The three top U.S. tycoons on Forbes’s “Green” billionaires list have received billions of dollars in taxpayer subsidies for their clean technology companies, after they spent hundreds of thousands of dollars for political campaigns and lobbying.

Two of the moguls, Elon Musk and Vinod Khosla (in photo), are technology pioneers based in California with net worths of $2 billion and $1.3 billion, respectively. The third, Christy Walton, is the widow of the late John Walton who was an heir to the Walmart fortune. Forbes says she is “the world’s richest woman” is worth $24.8 billion.

Significant percentages of Musk’s and Khosla’s value are derived from “eco-friendly” holdings. Musk’s main green investments are in Tesla Motors, an electric automaker, and SolarCity. Among Khosla’s clean-tech assets are KiOR and Gevo, both biofuels companies, and Calera Corporation, a company that uses captured carbon …

‘Beyond Petroleum’ Gives Up on Solar

bp solar no more

BP Solar, the alternative energy subsidiary of the oil industry giant which received a $7.5 million Department of Energy grant only four years ago, announced last week it would exit the solar business.

The unit just closed its only U.S. manufacturing facility, in Frederick, Md., last year. The company said it would outsource its production of solar photovoltaic panels to China and India. BP CEO Tony Hayward told the Washington Post at the time it was “moving to where we can manufacture cheaply.” BP auctioned equipment in January this year from the closed plant, and in a sign the overall industry – with bankrupt Solyndra as its face – is completely tanking, an experienced industrial auctioneer told the Frederick News-Post, “We’ve been doing more solar technology auctions lately.”

So much for the excuse that U.S. solar companies “can’t compete” because of the cheap, heavily subsidized production of panels in …