Thanks for the post, David.
Thanks for the post, David. While I appreciate the steps Tesla is taking to make a viable entry into the automotive industry, they should plan for occasional variances from their assumptions about competition, profitability and marketability. The vast majority of publicly-held companies don't begin production with $465M in loan guarantees from the DoE, so they should count themselves fortunate. In addition, a $7500 tax credit per vehicle clearly shows this company is taxpayer-subsidized and should not be offered special consideration in the marketplace. As a taxpayer, I already own automotive companies, so I really don't desire another. But, there it is.
All that said, I support the intelligent development and delivery of electric vehicles, but they must stand not on subsidies, but in the free marketplace. If, as CEO Elon Musk contends, Tesla can be profitable on its own by 2013, they are to be commended. But, one should understand what will transpire: the moment we produce a truly viable electric vehicle that people want to own (I'd suggest without a $7500 tax credit, but I digress), gasoline prices will drop to the floor. With the current market penetration of the combustion engine, if fuel drops below, say, $1 per gallon, alternative fuels will suffer dramatically... no matter how streamlined their sales and service channels are.