Tesla Joins List of Car Companies Begging for Cash

November 21, 2008
Tesla, who looked so promising not very long ago with its Elise-based Tesla Roadster, is now among the car companies lobbying for federal funding to stay alive. Autocar reports that Tesla is rumored to have requested $400 million from the U.S. energy department to fund two projects, "the details of which have not been disclosed."

It seemed only moments ago that Tesla was just months away from mass production, profitability, and a promising future. Then its CEO bailed, employees were laid off, and its best-laid plans were rent asunder by a nasty market. Tesla also lost a lawsuit with Fisker Automotive, which certainly didn't help their business.

Tesla's new CEO, Elon Musk of PayPal, boldly claimed that its upcoming electric sedan "will crush everything out there" in recent headlines. Alas, it looks as though plans for that sedan are probably scratched as Tesla is crushed by a brutal market.--Colin Mathews

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