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IIUC, Tesla was applying for loans under a specific program meant to promote the development of next-generation cars; this is a program that the Big Three have
by sethg 18y ago
IIUC, Tesla was applying for loans under a specific program meant to promote the development of next-generation cars; this is a program that the Big Three have also requested funding from. The public benefits most from such a program when all auto makers with scientifically sound proposals can qualify for it, not just the ones making cars that fit middle-class budgets.
- lutorm 18y agoIndeed. Most technologies are introduced from the high end and down, because the high end is less cost sensitive. This gives time to get experience with the technology and develop it to make it cheaper, at which point it goes into mainstream products. I don't think you should underestimate the power of image in the car industry either. If you want the all-electric car to become mainstream the public needs to see that this stuff works and is cool. There's no better way to do that than to build a car that kicks everyone else's butt. Reminds me of graphics cards. Nvidia and ATI introduce these ridiculously overpriced high-end cards that cost $600-700, and a short while later that tech is in mainstream $150 cards.
- jimbokun 18y agoKeep in mind, though, Tesla does not directly benefit from Moore's law the way Nvidia and ATI do. According to the article, the increase in battery capacity is more like 8% per year.