So what is it that is holding up the production of this car?
Well, a loan from the US government – that’s what. To be honest I am a little annoyed that the money isn’t a grant, let alone a loan.
The reason is another aspect of simple demand economic – people genuinely want to buy this car. They are even paying up front deposits even before the car has been built – and to add to that before the factory that will build the cars have been built!
As Tesla are on the front-line and are ready to go – where’s the money!? What is rather odd in the Guardian piece is not just that Tesla are awaiting the money from the US government – where are the investors – you know – the private investors?
Why don’t some of the Hollywood stars who are quite keen to drive their Prius showing how ‘green’ they are come up with working capital to get the factory off the ground? I know if I was in a position to do so I would. Bill Gates could finance this on his own – why doesn’t he?
Hollywood, by the way, is an industry of itself that is doing rather well in the recession.
There are 500 people waiting for this car – and when they are delivered, bought and paid for how many more will be waiting to buy?
GM, Ford – and the very badly run Chrysler could use the money – the billions – they are getting from the US government to produce something similar – well then, get on with it!