American Elephants


Another Government Loan to a Surprising Recipient. by The Elephant's Child

Our government has given a $468 million loan to Tesla Motors to build an electric sedan and the battery packs to run it.  When we have been hearing billions and trillions daily, $468 million begins to sound like chump change.  For those unfamiliar with Tesla motors, I have written about their sexy little Tesla Roadster ($110,000) here and here.  It’s a good looking little electric sports car;  when the London Times car guy tested first one and then another, um, there were a few problems.  But for $468 million they should be able to come up with a sedan.

The Chevy Volt is still much hyped by the Obama administration, and if they can get the price ($40,000) down, the  miles it can go up (40 mi.) on a charge, cover the nation with stations where one can plug in to get recharged less than 40 miles apart, and come up with new sources of energy to make the necessary electricity,  then all will be well, if GM can survive long enough to sell one that anybody wants to buy.

The problem is that the Obama administration is attempting to bankrupt the coal companies, deny nuclear permits, deny coal-fired power plant permits, and rely on “clean” wind farms which produce electricity only when the wind blows, which is definitely not all the time.

When the wind does not blow at the right speed, or when it does, there must be full-time back-up from a regular power plant.  Thus if you are depending on wind power you need more power plants, coal-fired or gas-fired, not fewer.  Wind, solar and geothermal are not cost-effective, cannot produce energy at all without vast subsidies, and there is no indication that they can ever become cost-effective.

But I wish Tesla well, I’m just not sure I understand why taxpayers should finance their experiments.

ADDENDUM: How could I forget to mention the $1.6 billion loan to Nissan to develop electric cars.  I got all wrapped up in the $468 million and completely forgot the $1.6 billion.  My bad.

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