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Nov 22nd
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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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Pop Life

The pop-up dining trend is freeing culinary imaginations and creating a guerilla version of event dining around Santa Cruz

 

Over Hills and Plains, Riding a White Horse, Bow and Arrows in Hand

Saturday, early morning, the sun enters and radiates the light of Sagittarius. Three hours later, the Sagittarius new moon (0.07 degrees) occurs. “Let food be sought,” is the personality-building keynote. “Food” means experiences; all kinds, levels and types. It also means real food. Sag’s secret is their love of food. Many, if not musicians, are chefs. Some are both. The energies shift from Scorpio’s deep and transformative waters to the “hills and plains of Sagittarius.” Sag is the rider on a white horse, eyes focused on the mountain peaks of Capricorn (Initiation) ahead. Like Scorpio, Sagittarius is also the “disciple.” Adventure, luck, optimism, joy and the beginnings of gratitude are the hallmarks of Sagittarius. Sag is also one of the signs of silence. The battle lines were drawn in Libra and we were asked to choose where we stood. The Nine Tests were given in Scorpio and we emerged “warriors triumphant.” Now in Sag, we are to be the One-Pointed Disciple, riding over the plains on a white horse, bow and arrows in hand, eyes focused on the Path of Return ahead. Sagittarians are one-pointed (symbol of the arrow). Sag asks, “What is my life’s purpose?” This is their quest, from valleys, plains, meadows and hills, eyes aimed always at the mountaintop. Sag emerges from Scorpio’s deep waters, conflict and tests into the open air. Sag’s quest is humanity’s quest. Sag’s quest, however, is always accompanied by music and good food.

 

The New Tech Nexus

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

 

Film, Times & Events: Week of November 21

Santa Cruz area movie theaters >
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