This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Government's Buffett-Less Tesla Warrants

Depending on the financial recovery of the restructuring of Fisker, a struggling loan recipient, the DoE's Tesla's warrant might have put the overall loan program at a modest profit.

Because of the DoE's tight management of ATVM purse strings, Fisker only drew on $193 million of the $529 million the DoE offered in financing to the company, amid production issues and a weak consumer reception for its Karma electric sports car.

While it's uncertain whether Tesla's newly unveiled financing arrangement to interested Model S customers will drive sales, or if expectations of the company's profitability are a lasting phenomenon, it is slightly disappointing that taxpayers won't see a gain in the increasingly likely event of the company's success.


Mitt Romney was both factually and economically incorrect to lump Tesla and ATVM within a list of stimulus "losers" such as failed solar panel manufacturer Solyndra.

A better gripe for the former Bain Capital head would be that the program was structured so taxpayers received only indirect gains from successes such as Tesla.

"The purpose of the DOE Advanced Technology Manufacturing Program was to serve as a catalyst for accelerating sustainable transport technology, which is in the best interests of all Americans and ultimately people throughout the world," Musk said in his Oct. 3 blog post.

-- Written by Antoine Gara in New York.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $16.11 0.00%
F $15.81 0.00%
GM $35.42 0.00%
GE $27.31 0.00%
TSLA $226.03 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs