Tesla Motors Too “Advanced” For Federal Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) Dollars?
The US Department of Energy has instituted a new Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) to help auto manufacturers. To quote the website, “The FY09 Continuing Resolution authorized up to $25 billion in direct loans to eligible applicants for the costs of reequipping, expanding, and establishing manufacturing facilities in the U.S. to produce advanced technology vehicles, and components for such vehicles. These vehicles must provide meaningful improvements in fuel economy performance.”
Hybrid, electric, hydrogen, biodiesel, flexfuel, not to mention just plain old more fuel-efficient vehicle and vehicle parts manufacturers can get loans from the federal government to help them be more green and lessen our petroleum dependency. Which is great news.
Unless you’re Randall Stross, loudmouth of The New York Times.
He seems to think that Tesla Motors is not doing anything to advance “Advanced Technology Vehicles” and that giving them federal dollars from this program is simply bailing them out. An interesting stance to take, considering that Tesla Motors produces an all-electric vehicle, the Tesla Roadster, with no emissions. The only pollution it can be said to “produce” is that of the electrical power facility that recharges it. (Meaning wind or solar plants have minimal pollution, nuclear can be arguably so, all the way up to coal which creates the most pollution to recharge a Tesla Roadster, unlike petroleum fuel vehicles which spit out emissions as they run.) Tesla Motors is one of the few rare breed of automotive manufacturers touting the 100% electric car.
“Tesla Motors is applying for the Department of Energy loans in the truest spirit and intent of the program,” responds Diarmuid O’Connell, Vice President of Business Development at Tesla Motors. “The company does not endorse the diversion of the ATVM resources for a bailout of any kind.”
And in fact, they don’t. According to Tesla Motors, who have already shipped 80 Tesla Roadsters to date, the Tesla Roadster is on the very cusp of going black and needs no bailout. What Tesla Motors in fact wants the federal loan for is to set up a factory to produce a Model S version, which is a second-generation trimmed-down five-seater sedan version for the the every-day driver offered at a much lower price point than the famed Tesla Roadster. In other words, a car we could all get behind.
Frankly though, whether Tesla Motors is telling the complete truth and wants to build for us a lower-cost electric car, or whether they really are bailing out the Tesla Roadster, it really doesn’t matter. Where General Motors has dropped the EV1, Tesla Motors continues to push the all-electric car. And they prove that an electric car doesn’t have to be a yawn a minute. They’re working on advancing battery technologies to make electric cars better than they ever have been, which indeed is the very spirit of the ATVMLP. Just because the first automobile that Tesla Motors produced was an expensive all-electric race car doesn’t mean they aren’t simultaneously helping to advance the very technologies that all electric cars and plug-in hybrids need. A point which Randall Stross seems to be unable to comprehend.
Further confusing the matter are reports of some folks in Washington wanting to turn the ATVMLP loan into a bailout for the failing economy of the major American automotive manufacturers like GM, the very company that dropped the all-electric EV1 car. The very group of automobile manufacturers who continue to be bested by fuel-efficient hybrids from Japan. Even Europe, with their better diesel technologies, and even BMW’s new all-electric Mini E, seem to be grasping what the world needs far better than the American auto manufacturers. I can’t seem to decide which would be worse, to support the American automotive manufacturers with such a bailout when they’ve done such a bad job of keeping up with the world’s needs, or to see so many generally innocent hard-working Americans out of work in today’s nightmare of an economy.
But the point remains that regardless of what the federal government may or may not do compared to what the ATVMLP had actually be intended for, Randall Stross still has his head up his behind. If you agree, I highly suggest telling him so, at: stross@nytimes.com.


