Electric sports car maker applies for US government aid

Tesla Motors is reported to have joined Detroit’s Big Three in applying for US government aid to secure its future.

The Silicon Valley electric car brand is understood to have requested $400 million from the US energy department to fund two projects, the details of which have not been disclosed.

It’s the latest setback for PayPal founder Elon Musk’s automotive firm, which recently made nearly half its staff redundant and lost a lawsuit against rival brand Fisker.

The request for aid has stirred up controversy in America, where analysts have accused the firm of using the crisis to try and ‘hive off’ funds.

Tesla has very few employees and the one car it produces is sold only in small numbers and is unaffordable to most consumers. General Motors, Ford and Chrysler are asking for a share of government soft loans totalling $25 billion. The loans are meant to fund future green technology for the three automotive giants.

Will Powell

 

 

Join the debate

Comments
3

21 November 2008

Clever. The US government needs Silicon Valley flush.

Bring back steel wheels.

21 November 2008

They should try Northern Ireland; I think there is a factory going spare for a revolutionary new car

14 April 2013

Thanks for the informative and helpful post, obviously in your blog everything is good. If you post informative comments on blogs there is always a chance that real people will click through.

interview transcription services

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Lotus Elise Cup 250
    First Drive
    29 April 2016
    The fastest, most track-focused and most expensive Elise ever made. It's simple, raw and immersive
  • Porsche 911 Targa 4S
    First Drive
    27 April 2016
    Slick looks, open-top fun and 911 handling sound brilliant, but the Targa has historically trailed the Coupé. How does the new model fare on UK roads?
  • Jaguar F-Pace 2.0d
    First Drive
    26 April 2016
    Jaguar's debut SUV wowed us abroad, but does it still impress as much here on the UK's roads?
  • Car review
    26 April 2016
    Electric saloon is ramped up beyond ‘insane’ for yet more effect
  • Car review
    26 April 2016
    Is this a genuine supercar slayer for top-rank sports car money?