Comments on: Never Mind That Bailout: Venture Funding for Auto Innovation Accelerates As Startups Race to Leave Detroit in its Own Dust http://www.xconomy.com/national/2008/12/01/never-mind-that-bailout-venture-funding-for-automotive-innovation-is-accelerating-as-startups-race-to-leave-detroit-in-its-own-dust/ Business + Technology in the Exponential Economy Sat, 11 Feb 2012 09:14:03 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Auto mechanic mark http://www.xconomy.com/national/2008/12/01/never-mind-that-bailout-venture-funding-for-automotive-innovation-is-accelerating-as-startups-race-to-leave-detroit-in-its-own-dust/comment-page-1/#comment-42873 Auto mechanic mark Sun, 14 Dec 2008 19:02:19 +0000 http://www.xconomy.com/?p=6531#comment-42873 No bailout needed but venture capital welcomed. My Ideas are not government approved but here they are any way. We will have to save America ourselves. The power of people. Rock stars and celebrities for buying American cars. Angelina and Brad love to help so lets get them to lead with a trade of some venture capital going to their favorite causes. We the people can bailout the big three with a focused effort. If the state and local governments want to help the effort they can reduce the sales tax for each sale in 2009. And how about 0 percent financing backed by the government. If the banks will not help the automotive credit market with the money they where given take some back and start a federal financing program to approved buyers. Stimulate and escalate sales saves the industry without additional tax payer money. But yes we will still need that bridge loan to get there! No bailout needed but venture capital welcomed. My Ideas are not government approved but here they are any way. We will have to save America ourselves. The power of people. Rock stars and celebrities for buying American cars. Angelina and Brad love to help so lets get them to lead with a trade of some venture capital going to their favorite causes. We the people can bailout the big three with a focused effort. If the state and local governments want to help the effort they can reduce the sales tax for each sale in 2009. And how about 0 percent financing backed by the government. If the banks will not help the automotive credit market with the money they where given take some back and start a federal financing program to approved buyers. Stimulate and escalate sales saves the industry without additional tax payer money. But yes we will still need that bridge loan to get there!

]]> By: Biofuels/biochemicals, automotive, Green Tie Gala « BZ Notes! http://www.xconomy.com/national/2008/12/01/never-mind-that-bailout-venture-funding-for-automotive-innovation-is-accelerating-as-startups-race-to-leave-detroit-in-its-own-dust/comment-page-1/#comment-42232 Biofuels/biochemicals, automotive, Green Tie Gala « BZ Notes! Mon, 08 Dec 2008 04:51:39 +0000 http://www.xconomy.com/?p=6531#comment-42232 [...] Xconomy: Never Mind That Bailout: Venture Funding for Auto Innovation Accelerates As Startups Race to Leave ... by Bruce Bigelow Plunging Oil Prices Require Alternative Fuel Startups to Take a Long View by Bruce Bigelow [...] [...] Xconomy: Never Mind That Bailout: Venture Funding for Auto Innovation Accelerates As Startups Race to Leave … by Bruce Bigelow Plunging Oil Prices Require Alternative Fuel Startups to Take a Long View by Bruce Bigelow [...]

]]> By: Self promo: Biofuels/biochemicals, automotive, Green Tie Gala « BZ Notes! http://www.xconomy.com/national/2008/12/01/never-mind-that-bailout-venture-funding-for-automotive-innovation-is-accelerating-as-startups-race-to-leave-detroit-in-its-own-dust/comment-page-1/#comment-42231 Self promo: Biofuels/biochemicals, automotive, Green Tie Gala « BZ Notes! Mon, 08 Dec 2008 04:51:15 +0000 http://www.xconomy.com/?p=6531#comment-42231 [...] Xconomy: Never Mind That Bailout: Venture Funding for Auto Innovation Accelerates As Startups Race to Leave ... by Bruce Bigelow Plunging Oil Prices Require Alternative Fuel Startups to Take a Long View by Bruce Bigelow [...] [...] Xconomy: Never Mind That Bailout: Venture Funding for Auto Innovation Accelerates As Startups Race to Leave … by Bruce Bigelow Plunging Oil Prices Require Alternative Fuel Startups to Take a Long View by Bruce Bigelow [...]

]]> By: Rachel http://www.xconomy.com/national/2008/12/01/never-mind-that-bailout-venture-funding-for-automotive-innovation-is-accelerating-as-startups-race-to-leave-detroit-in-its-own-dust/comment-page-1/#comment-41667 Rachel Tue, 02 Dec 2008 12:07:19 +0000 http://www.xconomy.com/?p=6531#comment-41667 To answer the fundamental question that this article poses: Yes, absolutely, the federal government should provide low-interest loans to R&D-focused automakers that have already demonstrated a commitment to building fuel-efficient vehicles. This will encourage and hasten the time to market of a sophisticated all-electric, zero-emission powertrain for affordable, family cars. If this isn’t in the public interest, what is? Just to set the record straight among the good folks in the blogosphere: Tesla is not applying for a loan from the Department of Energy to fund anything having to do with the $109,000 Roadster sports car pictured here but rather future generations of more affordable sedans and a powertrain facility to make battery packs and other components for other automakers, which could also use them for affordable sedans and subcompacts. To be sure, the Roadster is an important, paradigm-shifting product. Tesla has delivered nearly 100 to customers already and is increasing production starts to 30 per week in 2009. The all-electric, zero-emission Roadster is a viable production vehicle that also serves as an innovative precursor to other, less expensive products in Tesla’s pipeline. Ask the Xconomy guys if they enjoyed their test drive in September in Seattle -- it's a real car with amazing fit and finish, performance and handling to rival much more expensive cars. On that note, it's obvious but critical to emphasize that R&D and early-adopter technology is relatively expensive. Whether it’s the iPhone or photovoltaic panels, the first owners pay the most. But the technology inevitably becomes affordable within several product cycles, whether on the timeframe of Moore’s law or (in the case of battery capacity) at the fair clip of 8 percent per year. Given the Tesla Model S five-passenger sedan (base price expected at $57,500) and the Bluestar project (all-electric, zero-emission subcompact for $30,000), a government loan to Tesla would inevitably help speed delivery of more affordable vehicles that eliminate dependence on foreign oil and reduce drivers' carbon footprint. Finally, let's discuss the difference between the Detroit Three’s “bailout” and what was originally a progressive and well intentioned program to encourage fuel-efficient vehicles. The loan wouldn’t be used for the Roadster or Tesla’s ongoing operations -- and it would go to the company that has arguably done the most to rattle the Detroit status quo when it comes to developing vehicles with far greater well-to-wheel efficiency than a Prius. Tesla's blog clarifying the distinction: http://www.teslamotors.com/blog2/?p=66 FWIW, I'm all for spirited debate about public policy, but it should be based on facts. Blog on! Rachel Konrad Senior Communications Manager Tesla Motors, Inc. To answer the fundamental question that this article poses: Yes, absolutely, the federal government should provide low-interest loans to R&D-focused automakers that have already demonstrated a commitment to building fuel-efficient vehicles. This will encourage and hasten the time to market of a sophisticated all-electric, zero-emission powertrain for affordable, family cars. If this isn’t in the public interest, what is?

Just to set the record straight among the good folks in the blogosphere:

Tesla is not applying for a loan from the Department of Energy to fund anything having to do with the $109,000 Roadster sports car pictured here but rather future generations of more affordable sedans and a powertrain facility to make battery packs and other components for other automakers, which could also use them for affordable sedans and subcompacts.

To be sure, the Roadster is an important, paradigm-shifting product. Tesla has delivered nearly 100 to customers already and is increasing production starts to 30 per week in 2009. The all-electric, zero-emission Roadster is a viable production vehicle that also serves as an innovative precursor to other, less expensive products in Tesla’s pipeline. Ask the Xconomy guys if they enjoyed their test drive in September in Seattle — it’s a real car with amazing fit and finish, performance and handling to rival much more expensive cars.

On that note, it’s obvious but critical to emphasize that R&D and early-adopter technology is relatively expensive. Whether it’s the iPhone or photovoltaic panels, the first owners pay the most. But the technology inevitably becomes affordable within several product cycles, whether on the timeframe of Moore’s law or (in the case of battery capacity) at the fair clip of 8 percent per year. Given the Tesla Model S five-passenger sedan (base price expected at $57,500) and the Bluestar project (all-electric, zero-emission subcompact for $30,000), a government loan to Tesla would inevitably help speed delivery of more affordable vehicles that eliminate dependence on foreign oil and reduce drivers’ carbon footprint.

Finally, let’s discuss the difference between the Detroit Three’s “bailout” and what was originally a progressive and well intentioned program to encourage fuel-efficient vehicles. The loan wouldn’t be used for the Roadster or Tesla’s ongoing operations — and it would go to the company that has arguably done the most to rattle the Detroit status quo when it comes to developing vehicles with far greater well-to-wheel efficiency than a Prius.

Tesla’s blog clarifying the distinction:
http://www.teslamotors.com/blog2/?p=66

FWIW, I’m all for spirited debate about public policy, but it should be based on facts. Blog on!

Rachel Konrad
Senior Communications Manager
Tesla Motors, Inc.

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