No working capital plus no demand equals bankruptcy. This story reminds me of the Bixi bike project in Montreal. Bixi isn't bankrupt but it did get a massive loan from the city to keep operations going. In their case, they claim international demand is firm. We'll see.
You know, I find it absolutely astounding that while I can't get access to capital in a growth business with huge upside and obvious demand a person can come along and have a speculative idea related to the environment and likely get funding without much question.
Any engineer will tell you the challenges of making a go of the electric car. That's just one challenge. The next is amassing economies of scale (remember that?) to make it economically feasible to investors and consumers.
Still. Believers in the electric cars do have something to cling their hopes on. Automobiles with combustible engines started out expensive and hundreds of companies across Europe and North America existed before consolidation took place.
We're just not there. Taxpayers shouldn't be roped into the environmental craze. In case anyone hasn't noticed, we're broke - until a green idea comes along that is.
Let venture capitalist do it since something like this demands deep pockets. If they feel there's something to it, they'll put up the cash. If not, that tells you something.
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