Electric Car Maker Tesla Wants A Bailout Too


Silicon Valley based electric car maker Tesla is telling the world that it too needs a bailout. Its CEO, Elon Musk, told the Detroit Free Press that the company needs $350 million in order to develop a $57,499 four door sedan.

Rather than raise money from venture capitalists, like any good Valley start up, it’s taking a new approach asking the U.S. government to give it money. Musk says that the company needs $250 million to set up a factory to manufacture the sedans. The company isn’t trying to get the government to open a new account, rather it would prefer to swipe the money from a $25 billion Energy Department program intended for the development of electric cars. Currently the government is thinking about tapping $15 billion of that for GM and Chrysler.

If Tesla gets the money it claims it will be able to sell 20,000 sedans annually by 2011. If it doesn’t get the cash it might not even open the plant until 2011.

(Hat Tip: AutoblogGreen)