Ford Motor Co., the only U.S. automaker not receiving emergency federal loans, will get $5.9 billion in government financing to accelerate production of fuel-efficient cars. Ford will be among the first recipients of the loans in a $25 billion Energy Department program to promote production of the vehicles with improved fuel economy, the agency said today in a statement. Nissan Motor Co. will get $1.6 billion, and San Carlos-based Tesla Motors Inc., maker of the all-electric Roadster, received approval for $465 million.
Really? Tesla gets $465 million. The company that has yet to turn a profit and if you read my previous interview with Joe Powers from Tesla, you’ll find they scantly have a car guy to help them achieve it. Apparently, the only thing you need to succeed in getting money these days is a good PR agency because that’s all Tesla has been good at, hype. I’m not saying the cars are bad but they didn’t even know they were selling them at a loss! That’s like the basic principal to business plans and investment.
Overheard during the government/Tesla meetings:
Government: “Are you profitable?”
Telsa: “Well, no.”
“Do you know when you are going to be profitable?”
“Ah, no. Our management didn’t know crap so we priced the cars $20K under where they needed to be.”
“Are there any real car guys on your team?”
“No, we’ve built it up on smarty pants from Silicon Valley who have a dream.”
“Have you tried spreading yourself too thin by expanding the line?”
“Why yes! We’re launching a sedan because we can’t quite get the roadster off the ground.”
“Perfect. Can I loan you guys… I don’t know… say half a billion?”