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Apr 21st
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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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Smells Like Team Spirit

The organizers of TEDx Santa Cruz don’t just talk about this year’s theme, ‘radical collaboration’—they live it

 

Pluto Retrograde, Aries New Moon, Lyrid Meteor Showers

As the Lyrid meteors, radiating from the star Vega in the Harp constellation, begin showering heaven and earth with light, Pluto, planet of transformation (or die) turns stationary retrograde (Thursday, April 16), 15 degrees Capricorn. Retrogrades have purpose, allowing humanity time to review, reassess, research and reinvent while returning to previous situations. Retrogrades are times of inner activity, seeds sown in bio-dynamically prepared soil. Pluto retrograde is the most serious and resolute of retrogrades—a pure tincture, or, as in homeopathy, a “constitutional” touching the essences of all that matters. Pluto offers deep insight into confusion or puzzlement and areas where transformation is still incomplete. It’s valuable to have one’s astrology chart to follow what area of life the major planets— especially Saturn, Uranus, Neptune and Pluto—are influencing. These outer planets have long-term and lasting effects on our psyche, inner/outer life events, how people see us and how we see and process our world. Pluto, retrograde for five months (until Sept. 24) offers deep earthquakes of change, awakens humanity to the task of building (Capricorn) the new culture and civilization, flailing our inner world about, deepening us until we transform and do things differently. Pluto is an unrelenting teacher. New moon (29 Aries) is Saturday, April 18. With the personality-building keynote, “Let form again be sought.” Mars anchors the new creative fires of Aries into our world. The New Group of World Servers participates together in the new moon festival, while also preparing for the Taurus Wesak, Buddha Full Moon Festival (May 3). Join us everyone.

 

The New Tech Nexus

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

 

Film, Times & Events: Week of April 17

Santa Cruz area movie theaters >
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