Thursday, October 16, 2008

Economic Train Wreck Causes A Car Crash

The highly touted, much anticipated Tesla Roadster has hit the skids. Production of the $100,000+ electric sports car has been pushed back at least a year and the company is closing offices and laying off employees due to dwindling funds.

According to the LA Times:

"Before delivering its first production Roadster in February, Tesla raised about $140 million, mostly from venture capital firms such as VantagePoint Venture Partners. To help finance its next project -- a $60,000, four-door electric car called the Model S that it plans to build in San Jose -- Tesla once again looked to capital firms for an additional $100 million or so."


"Tesla maintains that it will be able to fund its Model S project by relying on up to $250 million in loans guaranteed by the Department of Energy, as well as on tax exemptions offered by California worth up to $9 million."

So the government is getting into the car business as well?