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Mar 30th
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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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Best of Santa Cruz 2015

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Spring Triangle: Three Spring Festivals—Aries, Taurus, Gemini

The Spring signs Aries, Taurus and Gemini constitute a triangle of force that sets the template for the nine signs that follow and the template for the entire year (Spring 2015 - Spring 2016) ahead. Aries initiates new ideas, Taurus stabilizes the new thinking of Aries and Gemini takes the initiating stabilized ideas of Aries/Taurus and disperses them to all of humanity. It is in this way that humanity learns new things, with the help of Mercury, the messenger. As Spring unfolds, three elements emerge: the Fire of Aries (initiating new ideas), the Earth of Taurus (anchoring the ideas of God through Mercury) and the Air of communicating Gemini. These three signs/elements are the Three Spring Festivals. They are the “triangle of force” forming the template (patterns) of energy for the upcoming new year. After these three we then have the soothing, calming, warming, nurturing and tending waters of the mother (Cancer). Cancer initiates our next season under the hot suns of summer. Planets, stars and signs create the Temple of Light directing humanity towards all things new. March 29 is Palm Sunday, when the Christ, World Teacher, was led into Jerusalem (City of Peace) on a donkey (humility). Palms waving above His head, signified recognition of the Christ’s divinity. Palm Sunday is the Sunday before the Easter (Resurrection Festival). Palm Sunday begins Holy Week, the week of capture, imprisonment, passion, sacrifice, crucifixion, death and resurrection of the christ. All events in the Christ’s life represent events (initiations) that humanity experiences through many lifetimes. We turn our attention to these holy events this week. Their concepts portray and reveal to us greater spiritual understanding. Then, Aries, the “light of life itself” shines through us.

 

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