Tesla Motors of San Carlos, California Searching for Federal Loan
Bringing an affordable electric vehicle to the mass market is not an easy task. Tesla Motors of San Carlos, California, a new electric vehicle manufacturer, is in need of another financial boost after the recent economic downturn has forced them to seek private financing of around $40 million. The company's CEO, Elon Musk, is asking the federal government for at least a $350 million loan to finance a new manufacturing plant in San Jose, California. This plant will focus on Tesla's new project, a $60,000 model "S" sedan that will be more affordable for many consumers.
Tesla is definitely headed in the right direction. It is unfortunate that the company might have to put projects on hold if they are not given the federal loan they are requesting (which is a fraction of what Detroit is asking for.) The "Big 3" auto manufacturers are still set in their old ways which is the main reason they have to ask for a multi-billion dollar bailout in the first place. If they were able to analyze changes in the market accurately, they would not find themselves in this financial mess. What do you think? Feel free to comment...
