

Should Tesla receive government help? - amrithk
http://dealbook.blogs.nytimes.com/2008/12/01/should-taxpayers-pay-to-back-tesla-motors/

======
bilbo0s
A guy goes to his wife with a business idea. He has had them before, and his
use of their savings has taken the couple's net worth to below zero when the
debts that he has incurred are factored in. The thing is, he believes that
this business will be different. This is the one that will turn things around
for them. A bit skeptical, the wife hears the husband out. At length, the
husband finishes his 'pitch'. Still skeptical, the wife tells him that while
she would love to help him give this new business a try, they are out of
money, and are obliged to start paying down debts at this point. Relieved at
being able to blame their situation for the denial as opposed to her
skepticism, the wife tries to move the conversation to a different topic. When
the husband hits upon an idea.

They still have a sizable sum of money in the kid's college fund!!! Just
enough to get him started!!!

\----

People we are broke. I would suggest everyone accommodate themselves to the
new fiscal realities coagulating around us. To continue to spend in the hopes
that some future generation will pick up the bill is morally unconscionable.
It is also contrary to our self interests by the way. As it is highly likely
that the most damaging consequences of our financial mismanagement will
develop in a more immediate time frame. That is, it is likely that you only
THINK your kids will be the ones saddled with the consequences. In our current
situation, it is far more probable that you will.

If a business enterprise requires government assistance to make it
economically feasible then alarm bells should be going off in our heads with
regard to the economic efficiency of that enterprise.

------
ssharp
Any federal money or loans that goes to Tesla should be through some sort of
grant project where other automakers and manufacturers can compete for the
money.

The only way direct bailout money should go to them is if they have any IP
worth salvaging. Personally, I don't think an all-electric car is "the future"
of the passenger car. Fuel cells, PHEV, natural gas, etc. all seem like better
options, so I'd rather see federal money invested into these technologies.

~~~
omouse
"Any federal money or loans that goes to Tesla should be through some sort of
grant project where other automakers and manufacturers can compete for the
money."

Some sort of grant project for clean energy? Some kind of grant project that
has $25 billion to give away to _worthy_ projects?

 _Almost entirely lost in the subsequent discussion was the fact that Section
136 of EISA created a $25 billion fund known as the Advanced Technology
Vehicle Manufacturing Incentive Program (ATVM). The ATVM specified that the
Department of Energy (DOE) should provide loans, loan guarantees and grants to
new and existing automakers and suppliers to encourage development and speed
delivery of next-generation cars – vehicles that meet higher standards for
fuel efficiency and stretch technology beyond the internal combustion engine.
The program aimed to provide “grants and loans to eligible automobile makers
and component suppliers for projects that re-equip, expand, and establish
manufacturing facilities in the U.S. to produce light-duty vehicles and
components that make meaningful improvements in fuel economy performance.”_

[http://74.125.95.132/search?q=cache:iJGKVzIN1ikJ:www.courtho...](http://74.125.95.132/search?q=cache:iJGKVzIN1ikJ:www.courthousenews.com/2008/11/21/LeadRegNov2108GreenCars.doc+Advanced+Technology+Vehicle+Manufacturing+Incentive+Program&hl=en&ct=clnk&cd=1&gl=ca)

~~~
ssharp
Right...

The debate is whether or not Tesla is more worthy of the money than another
manufacturer. I'm not convinced they are.

------
jonursenbach
No.

No business should receive help from the government aside from a publically
available grant. Bailouts violate the concept of a free market.

------
ajkirwin
No. Because they are not building consumer vehicles, but luxury cars.

~~~
swombat
The work they're doing on luxury cars could easily be applied to consumer
vehicles.

~~~
omouse
You're right because they work on battery technology too. They _have_ to in
order to make electric vehicles more appealing and they plan on selling their
batteries to other automakers.

