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Oct 31st
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In Defense of Tesla and Fisker

col_tesla-sThe two most prominent green car startups are Fisker Automotive and Tesla Motors, but a recent BusinessWeek article quotes longtime analyst Maryann Keller as saying, “We’re pouring $1 billion into two companies without a future. The economics of the industry favors large companies.” Is Obama wasting our hard-earned money? I don’t think so.

Of $8.5 billion in Department of Energy loans to automakers so far to build new green-themed plants, $465 million went to Tesla for work on its Model S sedan and, more recently, $528 million to Fisker Automotive for final design work on its $89,000 Karma luxury plug-in hybrid and for its more affordable Project Nina car. The total Advanced Technology Vehicles Manufacturing Loan fund is $25 billion, so much of the money remains to be spent.

BusinessWeek says this view is also held by “other critics,” but only quotes Keller. “Critics” in the article say that Fisker is an “integrator” rather than an innovator, buying the motor and battery technology for its Karma (due to roll off Finnish assembly lines starting in November) from other companies. Fisker responds that it built the Karma’s chassis. When I talked to an Energy Department spokeswoman in September, she told me that Fisker’s “two projects seemed to be worth the risk of the loan,” and would create “a large number of jobs in America.” She also said the loan, which will be paid in stages, would not “go out the door” until conditions were met.

She later said there was no deadline for the conditions to be met. Henrik Fisker said that those conditions were worked out in months of discussions with the agency. “It’s similar to a loan we might get from a bank and it’s not a problem,” he said. “The DOE wants us to be successful.” And when it comes to EVs, even many established brands are on a learning curve. General Motors does not make its own batteries, and Ford retained the Canadian company Magna International as its partner in building a Focus-based electric sedan for 2011.

Tesla, the article says, “has more credibility as an innovator,” since it makes its own battery packs and Daimler invested $50 million to buy a tenth of the company. “But it will be a huge challenge for either Fisker or Tesla to achieve sufficient scale,” BusinessWeek says. “Selling 100,000-plus cars a year requires a large network of dealers.” Tesla has seven dealerships now but is building more, and Fisker expects to have 100.

Tesla is perhaps the most fiscally successful of the startups, but the government money still dwarfs the $300 million the company has raised privately. But both Fisker and Tesla point out that the DOE funding is not in the form of a grant: It’s a loan, to be paid back with interest.

DOE funding also takes the form of matching grants from stimulus funds, and in August the agency named 48 recipients of that largesse, totaling $2.4 billion. The perception was that this funding favored Detroit and Big Three-connected suppliers. Start-ups, especially California-based ones, felt left out in the cold. We’re spending enough government money on the Big Three. The startups deserve investment, too.

 

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Jawing

Monterey Bay scientists are working to crack the mysteries of—and dispel the myths about—great whites. But in the highly contentious world of shark experts, there’s a fin line between love and hate

 

Altars of Remembrance, Forgiveness & Rapprochement

We’re in Scorpio now—things mysterious, ageless, hidden, sometimes scary. Friday is Halloween; Saturday, All Saints Day; Sunday, All Soul’s Day. Sunday morning at 2 a.m. (after midnight), Daylight Savings Time ends. Clocks are turned back. Tuesday is the General Election. Our vote is our voice. Each vote matters. Applying freedom of choice—Libra’s teachings. It’s time to build Halloween, All Saints and All Souls altars—with marigolds, pumpkins, sugar skeletons, copal (incense), pomegranates, persimmons, candy corn and cookies, orange and black. It’s so Saturn (now in Scorpio). Saturn is the dweller on the threshold (like St. Peter at the gates of heaven). Saturn can look like a Halloween creature—a gargoyle—a fantastic dragon-like creature protecting sacred sites. The dweller (Saturn) stands at the door or threshold of sacred mysteries, wisdom temples, inner sanctums of churches, offering protection, scaring evil away. The last day of October and first two days of November, when veils between worlds thin and spirits roam about, are times of remembrance, forgiveness, reconciliation and rapprochement. These actions liberate us. At death, when reviewing our lives and the consequences of our actions if we have forgiven, then we are free, less encumbered with grief and sadness. We place forgiveness on our altars. Happy Halloween, everyone! It’s good to dress up as what we’re afraid of. Or whom we would mentor. Then we become one with them. Note to readers: by Thanksgiving I will need a place to live (with purpose). Please contact me if you know of a place where I can rest for awhile. Teach and build community. [email protected] I will be leaving my mother’s home for the last time.

 

The New Tech Nexus

Community leaders in science and technology unite to form web-based networking program

 

Not Cool

Even Bill Murray’s hipster cred can’t elevate ‘St. Vincent’
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