This from the USA Today:
PALO ALTO, Calif. (AP) — Tesla is recalling as many as 1,228 of its Model S vehicles, citing a problem with a rear seat latch in the electric sports sedan.
I don’ think the news here is the recall but rather the fact that they sold over 1200 of these cars. Just kidding just kidding. No actually, the real news is that Tesla Motors borrowed almost a half a billion dollars from the taxpayers. At the time, I certainly thought goodbye to that dough. But I was pleasantly surprised to find out that the company plans to pay the taxpayer back almost 9 years earlier than initially thought.
Woo hoo for them right? Well if it’s all the same to you I’d rather these folks get their loans in from the market rather than the taxpayer. My meaning is that if the car is such a great idea then surely they can compete for capital in the free market like everyone else has to do who are not in tight with whoever is in the White House. Historically, the market is a much better judge of ‘good ideas’ than some bureaucrat sitting in Washington with no real business experience.
You see Obama doesn’t know crap about electronic thing-a-ma-jiggies - all he knows is that he hates “Big Oil” because you know they are killing the environment and probably babies, puppies and unicorns. So what he sees is a cool looking electronic car that does not run on “Big Oil” - never mind all the technical problems the technology still has - he loves it because it cuts ‘Big Oil’ out of the loop! Not exactly an objective analysis for an investment opportunity but what do you expect form a community organizer? Instead, the taxpayer is on the hook for whatever strikes the One’s fancy regardless of any analysis or how flawed the business plan may be.
Bottom line: It's easy to invest other folk's money, where it gets hard is when you invest your own. Do you think the One would have invested any of his own money in Tesla?
He (sorta) won on this one, but I see it more like a blind squirrel finding a nut than any real thought process. Besides, there are so many more that cost the taxpayers billions over the last 5 years that this one win is rather pathetic by comparison.
Exit question: Which of the ‘investments’ that the Obama administration has made in green initiatives over the past 5 years will the MSM talk about? This one where the taxpayer broke even or the vast majority where the taxpayer got played?