Blake Helms posted on November 30, 2008 21:15
Tonight Jason Calacanis sent an email to his list in an attempt to rebut Randall Stross attack on Tesla Motors. If you are not on the list it has been reposted here
My thoughts
I completely agree Jason. I can't afford a Tesla Roadster ( Although I REALLY want one) but people like you offset the R&D and startup cost so that people like me can afford them. I'm glad we did not stop development on computers simply because they once cost 100's of thousands of dollars and filled whole rooms. At that time a computer with more than a few kbs was a pipe dream. It took corporations, universities and the government buying them and contributing to the R&D to create better, faster computers. This spawned competition which led to further development and we now have computer for under $300. Amazing how capitalism works!
As far as a bailout for the auto industry, I am completely against it. I am a hard-line capitalist and I do not believe that we should suspend capitalist ideas because a company made foolish business practices. American's love to hold up our capitalist ideals until they stop working for us, and then want the government to bail us out. I think the money could be much better spent on companies like Tesla who want to advance the industry. Companies like Tesla are playing on an uneven field they are expected to play by the rules of traditional capitalism while GM, Ford and Chrysler get the benefit of the deep government pockets. No one company is important enough to be bailed out. I know a lot of people will disagree. I'm not saying it will not be an extremely difficult road for many people but if a company makes decisions that cause it to get into this state then it deserves to fail. The beauty of capitalism is another company will step in and fill the void. We would not be in this state if we let capitalism work the way it was designed.
Stross' argument about battery technology is flawed. Battery technology has not advanced for the same reason the auto companies are going bankrupt. US Auto makers became complacent and continued making SUVs and never advanced other technologies because they did not have to, people were buying their SUVs. The same is true of battery manufacturers. No company has stood up and taken the lead demanding a cell phone battery that can last a month, a laptop battery that can last a week or a car battery that can last 1,000 miles. Maybe this could be another X-Prize.