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I like it that the government didn't just write a check and say "here, have some money" but instead put in requirements. The requirements were of the sort required for Fisker to become a real automaker.

What I think may be the core problem is pushing for Fisker to go from zero to full fledged large scale automaker within a couple years. Seems to me that "instant automaker just add water" is unlikely to work in practice, and it doesn't matter whether it's government or private funding.