Part of Silicon Valley’s skill set is a PR hype machine second only to those of political campaigns.

If all electric cars become a mass market item they are almost certainly going to come from one or more of the established automotive companies.

Tesla and it’s ilk will probably be reduced to making “we moved the conversation in our direction” concession speeches.

Considering it takes the established car companies hundreds of millions, if not billions, to create a new model, getting Tesla to market for under 200 Million is a considerable feat in my book. Remember this is not a three wheel “car” (*cough* motorcycle) or neighborhood golf cart that avoids all the regulations. It has to be engineered to the same safety standards as all the other real cars.

It is an uphill challenge to launch a new car company from scratch and I think the odds are against Tesla succeeding long term, but it is a little early to write them off yet.

I wish them luck.

I’m thinking about the sedan that comes next as I’m asking all this. Lets say they ship 500(a very optomistic number I think) cars in those 2 years. How much profit could they possibly be generating from those $100k roadsters, since they are buying chassis from Lotus and it has super expensive batteries. Another optomistic number lets say $20k. $20,000 times 500 equals $10million in profit over 2 years. How on earth is that going to be enough to help develop the even more expensive sedan they plan to have out in 2 years when they spent $200m on the roadster. They just going to keep finding investors and never give them a return on their investment. I know your going to say it wont cost as much except for the fact they have to design a purpose built platform for that project like they claimed they would due. Sure the drive system is 75% there using what they have already developed, but this from scratch or even a highly modified one from someone else is going to be really expensive due to it’s size and needs or practicality.

This doesn’t even take out a huge chunk of money for the investors seeing something from the deal, now that Eberhart is gone who is going to say no to them taking their piece. I really think this company is a big sham. But I’m sure there are some knowledgeable commentors that can shed light how the venture capitalists might adress these development costs and projected profits.

I love their imaginary Volt-like 2 year timeline for this sedan. I have a feeling the plug will be pulled on the Tesla company after a few hundred cars are shipped and the money men still dont see the money rolling in, let alone dump more money for an even more expensive to develop car at a lower price point. It really pisses me off they used Nikola Tesla’s name, the guy doesn’t get enough justice as it is and when this fails he will just have more crap piled on his legacy.

V-A-P-O-U-R-W-A-R-E