Do Fisker and Tesla deserve government money?
Over the next several years the government is going to dole out many tens of billions of dollars in grants, loans and tax credits to help green the automotive landscape. Thus, startups such as Tesla and Fisker are hoping to obtain as much of this money as possible to increase their green automotive efforts. Yet, after a $7,500 tax credit, neither will offer a vehicle priced much below $50,000.
Does this really help green the auto industry?
Minimally, it will take more than a decade, if everything goes extremely well, for these companies to sell anything priced close enough for mass consumption. Yet, both stand to reap huge IPO rewards with the help of government money.
Still, I cannot help but question the real world prospects of either company. Every major automaker has multiple plug-in options these days in the pipeline. Can either Tesla or Fisker contribute anything to this landscape? Can they really compete at anything but luxury vehicles?
Perhaps. Thus, maybe these companies are deserving of massive government assistance, but I dare say neither Fisker nor Tesla is outside of the box in their automotive thinking these days. All this makes me wonder, are just batteries and a plug the solution to America's auto woes and energy policy? Are we really thinking far enough outside of the box?