A command economy and Tesla

Tesla, the former manufacturer of a $100,000 battery-powered sports car, announces an IPO. And why not? They are stopping production of their roadster until at least 2013, but we taxpayers have just given them $435 million to build a new factory. Investors will flock to buy into this no-lose project.

Command economies are fun – the government shifts capital as politics and political whims dictate, runs roughshod over individual rights and everything looks rosy for years, or even decades. Liberals love it – witness their praise of Russia and China. But ultimately, a command economy cannot sustain itself – Cuba, Venezuela, Russia and, coming soon, China. Liberals will discount these failures and blame other factors for them (Bush/Cheney is still good) but there you have it.

Anyway, there’s your money, gone to prop up a guaranteed  a money-loser like Tesla. I’d go ahead and buy the stock: ride it up and then get the hell out. The penny stock folks call this “pump and dump” – our current regime calls it “investing in the future”. Whatever.

3 Comments

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3 responses to “A command economy and Tesla

  1. Anonymous

    Tesla: $100K POS car for Gulfstream commies who almost always aren’t car guys (or capable drivers)

  2. Greenwich Man

    That offering looks pretty gnarly. In the wreckage of the auto industry, give a group of newbies several hundred million to build a new car from scratch out of laptop batteries, build a totally new retail model and infrastructure, charge $49k for the thing and hope people show up. Yikes.

    The roadster is a porky little thing, takes forever to charge, and, depending on how the power is generated, is probably less efficient than an Elise, the far better car with virtually the same body. Unless they massively improve charging times and battery performance for the S, they’re screwed. Or at least their shareholders are.

    When will we realize that gas is part of the problem, but as we look at solutions there’s no free lunch in power generation and storage in batteries?

  3. Renting in OG

    Anonymous – you ever driven one? They are pretty fun and definitely not a POS.

    Is funny though – I was toying around with the idea of buying a Roadster a while back (although buying a house in Riverside and now won’t be able to afford something like a Tesla anytime soon…) but I read the S1 earlier today and it basically talked me out of it….

    Still interested in the Model S but a long way to go before that comes online.