Three Auto-Related Firms Called Out During Presidential Debate
Wednesday’s debate between Gov. Mitt Romney and President Barack Obama not only saw Romney gain some footing in the presidential polls, but it also saw him accusing Obama of rewarding green-energy firms $90 million tax breaks.
Three of those companies included in the tax break in question were auto related, and Romney called out Tesla Motors and Fisker Automotive, two plug-in car manufacturers, and Ener1, a battery maker. The latter has filed for bankruptcy protection, while the future — and success — of Tesla and Fisker are a mystery.
Tesla has a federal loan of $465 million to produce its electric sedan, the Model S, and a crossover called Model X. The public company, which is based outside San Francisco, hasn’t reported a quarterly profit yet, but has started to produce vehicles. The company would make early payments on its loan, said CEO Elon Musk.
Meanwhile, Anaheim, Calif.-based Fisker’s plug-in sedan, the Karma, was designed in the U.S. but is produced by a Finland-based contact manufacturer. Of the $528 million federal loans the company received, it spent $169 million of it before being cut off for not meeting loan conditions.
Ener1 filed in January for its bankruptcy protection. The company’s EnerDel subsidiary obtained a $118 million federal loan after it cited limp demand for its lithium-ion batteries it made for electric cars.
Though Obama’s bailout of General Motors and Chrysler has played a significant role on the campaign trail, it never came up during the debate.
The presidential hopefuls will meet again Oct. 16 and Oct. 22 for their final two debates.
