Tesla's cheap, $57,000, EV dependent on government aid

100th Roadster finally delivered

Tesla will delay plans to build it's new $57,000 four door sedan if the government doesn't give it $350 million in auto loans. If the government does deliver the money, Tesla hopes to build 20,000 sedans per year by 2011.

While I have great respect for Elon Musk, I have a hard time buying this business if it requires government help. Thus far Tesla has produced just 100 cars. In 2011, if Tesla can start selling $57,000 EVs, they will have to compete with much cheaper plug-in hybrids and EVs from numerous major automakers.

In my opinion, unless gas costs at least $5.00 in 2011, $40,000 for a Volt is too expensive. Still, I'd take a range extended $40,000 Volt over a $57,000 EV any day of the week.

I just don't see a legitimate business case.