Tesla Deserves Bailout Money

The NY Times has a story about Tesla Motors asking for a $400M piece of the $25B in automotive bailout money. Randall Stross clearly doesn't think they should get any of it. Complaining that Tesla is merely making cars for the rich, and asking why tax payers should pay for any of it. Honestly I'm almost with him on that part.

Tesla has a very long waiting list of people who already spent $109,000 for their cars. Even with that money already in they are having trouble making ends meet. That's just poor business.

However what they are doing is too important to let them go under. None of the major auto makers wants to make cars that don't have ICEs. Mostly because electric cars have virtually zero maintenance cost. Rotate the tires and refill the washer fluid twice a year. That's it. They will run a decade before they need anything else. At that point you buy a new battery that lasts longer, and your good for another ten years. Also the roadster is simply the beginning. If they get the money, in two years they will produce a 4 door sedan for around $50K. In every way it is an investment in the future

Tesla is currently further along with this technology than anyone else in the world. $400M is literally pocket change compared to what the government spend money on. When was the last time you heard anything about sombody requesting less than $10B from the government? If they say they need $400 million, I say give them a Billion. Make them the next big auto manufacturer. The market desperately needs a kick in the pants. Tesla is trying to deliver it.