Tesla name drop in the State of the Union speech!

[Canuck]

Originally Posted by Canuck
Are you saying the government loan never helped Tesla stay afloat?

Actually, it didn't. Common misconception. It was Daimler that saved them when they were desperate.

You're probably right but who knows? One thing seems certain though: Tesla and the battery gigafactory, and the jobs they are currently providing, likely wouldn't be at or even near the same stage they are now without the loan.

I agree with David desJardins' analysis of this issue:

"It is impossible to know for sure how Tesla would have done without the loan. It depends on the willingness of private investors to step up and fund the operations of the company, or conversely the ability of the company to bootstrap itself and grow in a slower way. Musk did not have the resources at that time to fund the company itself. If private investors had stepped in to fund the work that the government loan paid for, then they would have done very, very well indeed, making at least a 10x return on their money, given how Tesla has performed since then. But sometimes even when it's a good investment no one has the foresight to make it, so it's impossible to know what would have actually happened. I understand that Larry Page is very close to Elon Musk; my personal belief is that Page probably would have helped to fund Tesla in one way or another if necessary. But that is just a theory."

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I hate seeing Tesla politicized at all since the company isn't involved in politics other than what is necessary to stay in business.

I agree it's best not to see Tesla politicized but saying that "the company isn't involved in politics other than what is necessary to stay in business" is not true. In fact, it's CEO Elon Musk tweeted directly to Romney after the election, and speeches he has given, "suggesting that the re-election of Barack Obama as president was a good sign for the future of plug-in electric cars in the U.S." certainly seem to me that the company's CEO at least is involved in politics more than is necessary to stay in business:

Elon Musk, CEO Of 'Loser' Tesla, Suggests Romney Got It Wrong

 

[yobigd20]

There is a politics thread on here that one of the mods will probably merge this entire thread into. I have nothing useful to contribute here other than saying if I was a mod I'd merge it haha

 

[Grendal]

I agree it's best not to see Tesla politicized but saying that "the company isn't involved in politics other than what is necessary to stay in business" is not true. In fact, it's CEO Elon Musk tweeted directly to Romney after the election, and speeches he has given, "suggesting that the re-election of Barack Obama as president was a good sign for the future of plug-in electric cars in the U.S." certainly seem to me that the company's CEO at least is involved in politics more than is necessary to stay in business:

Elon Musk, CEO Of 'Loser' Tesla, Suggests Romney Got It Wrong

Defending your company against attack isn't the same as having a political opinion and talking politics. I really don't know Elon's politics since I've never seen him talk about them. He is involved in politics because of his companies and having to negotiate and fight for them. Those political battles have more to do with the laws than any particular political party or political viewpoint.

 

[Canuck]

Defending your company against attack isn't the same as having a political opinion and talking politics. I really don't know Elon's politics since I've never seen him talk about them. He is involved in politics because of his companies and having to negotiate and fight for them. Those political battles have more to do with the laws than any particular political party or political viewpoint.

Agreed and it's probably unfair of me to suggest that Elon Musk's political viewpoint, whatever it may be, can be imputed to Tesla.

 

[Doug_G]

One post moved to Politics - Quarantine Thread

 

[ecarfan]

I just love it that Obama mentioned Tesla in a State of the Union speech as an example of an American company creating new jobs through new innovative technology! I hope we can all agree on that.

 

[bluenation]

the fear of political talk seems unique to TMC

it's worth noting that cars are politics. renewables are politics. musk himself plunges himself in political arena.

anyways. hopefully tesla gains more bipartisan support.

 

[StephenM]

It is highly puzzling to me how Tesla is not a more unifying presence in the political arena, considering that Bush created the program, Obama approved it, and American jobs and manufacturing were realized because of it. I wonder how Tesla FUDsters will react to the President mentioning the company by name. Will they redouble their efforts or finally realize that Tesla has made it and is here to stay?

 

[Rheazombi]

Super psyched for the Tesla mention, positive words about space travel (he even talked about permanent off-world settlements), pro solar and wind power rhetoric, and had strong words about taking climate change seriously.

I love that he mentioned Tesla in the same breath as eBay and Google. EBay and Google are pretty much known by every person in the country, so I bet a ton of people who had no idea what Tesla is are now intrigued and will hopefully look into it!

 

[caddieo]

Likely true. However, we may get a large number of people doing a search on Google for "Tesla."

I sure hope so. I am still amazed at how many people are ignorant about this car.

 

[Jim MacInnes]

Well said ecarfan. We should all be celebrating this innovative technology helping to lead the way.

 

[aznt1217]

In some ways both parties can take credit for supporting Tesla. The Bush Administration created the ATVM loan program. It was under the Obama Administration that the loan was approved. Personally I think the Republican's could take more credit than the Democrats since they created the ATVM loan program, however they lost any ability to take credit when they lumped Tesla in with "green" programs to attack Obama during the last election. I hate seeing Tesla politicized at all since the company isn't involved in politics other than what is necessary to stay in business.

JMHO.

Bingo. But I thought it was approved in 2008?

 

[gg_got_a_tesla]

Bingo. But I thought it was approved in 2008?

January 2010: Tesla Motors | Department of Energy

 

[aznt1217]

January 2010: Tesla Motors | Department of Energy

Apologies, for clarity, I meant the program's creation in 2008.

 

[abasile]

It is highly puzzling to me how Tesla is not a more unifying presence in the political arena, considering that Bush created the program, Obama approved it, and American jobs and manufacturing were realized because of it.

It's also worth mentioning that Tesla Motors has actively sought to recruit significant numbers of U.S. military veterans (who have generally leaned Republican). It's great to see efforts made to provide opportunities to those who have served.

2014: Tesla Motors on a mission to hire American veterans - San Jose Mercury News

 

[Canuck]

It is highly puzzling to me how Tesla is not a more unifying presence in the political arena,...Will they redouble their efforts or finally realize that Tesla has made it and is here to stay?

I think they are beginning to realize that Tesla has made it, and is here to stay, and they will get on side, just like Bill O'Reilly did...

Bill O'Reilly Lavishes Tesla With Praise One Year After Blasting It - Business Insider

 

[mspohr]

From a Slate article:
In 2009, as the financial crisis raged and General Motors and Chrysler plunged toward bankruptcy, Tesla Motors faced a seemingly impossible task: raising half a billion dollars to build an electric-car factory. Tesla had just staggered through a year of layoffs, canceled orders, and record losses. Then suddenly, salvation. The U.S. Department of Energy offered to lend the company $465 million at rock-bottom interest rates.
Four years later, Tesla Motors offers a remarkable example of how a well-timed government investment in the right company can pay off. Every week, 400 all-electric Model S sedans roll out of Tesla’s factory in Fremont, Calif., which the government’s loan financed. Motor Trend named the Model S its 2013 Car of the Year. Tesla’s stock is the toast of Wall Street, giving the company a market value topping $12 billion. And in sharp contrast to Solyndra, the solar panel maker that defaulted on its $528 million loan from the Energy Department, Tesla last week paid the government back early, with interest."

I believe at the time of this loan, Musk had put every cent he had into Tesla and Tesla was within days of going bankrupt... it literally saved them.

 

[Doug_G]

I believe at the time of this loan, Musk had put every cent he had into Tesla and Tesla was within days of going bankrupt... it literally saved them.

Again, no. Totally wrong. That all happened prior to the government loan. They wouldn't qualify for the government loan while in financial distress. It wasn't a bailout program.

It was Daimler's $60 million investment that bailed them out. Then Panasonic got on board, as I recall. THAT is what saved them. And it all happened long before the government loan.

They took the government loan because the program was available. Only an idiot would bypass a good source of financing. You could argue that they had a fiduciary responsibility to take it on.

In the end what really got the company booted was going public. They paid off the government loan early because all the political grandstanding going on wasn't worth it.

 

[NoMoGas]

It is highly puzzling to me how Tesla is not a more unifying presence in the political arena, considering that Bush created the program, Obama approved it, and American jobs and manufacturing were realized because of it. I wonder how Tesla FUDsters will react to the President mentioning the company by name. Will they redouble their efforts or finally realize that Tesla has made it and is here to stay?

Sadly too many are politically aligned with big oil, climate change denial etc... Otherwise Tesla would be something all sides would naturally rally around. Right now, Tesla is a symbol of saving the environment, a subject Elon often speaks of. If one side can't even get itself to acknowledge reality, what can anyone do? Bush 41 ran on protecting the environment,
the current crew wants to slash and burn the EPA. Hope that wasnt too political, tried to stay fact based.

 

[mspohr]

Again, no. Totally wrong. That all happened prior to the government loan. They wouldn't qualify for the government loan while in financial distress. It wasn't a bailout program.

It was Daimler's $60 million investment that bailed them out. Then Panasonic got on board, as I recall. THAT is what saved them. And it all happened long before the government loan.

They took the government loan because the program was available. Only an idiot would bypass a good source of financing. You could argue that they had a fiduciary responsibility to take it on.

In the end what really got the company booted was going public. They paid off the government loan early because all the political grandstanding going on wasn't worth it.

If you watch the movie, "Revenge of the Electric Car", it covers this period of time and there is a scene in the movie where Elon describes receiving this call from the EPA on Christmas eve telling him the loan had been granted... he describes how Tesla is about to go bankrupt and thinks all is lost and that the government loan wouldn't possibly come through during the holidays... but it does.
You really should watch it... it's very good.