DOE makes $150m loan conditional on matching private funds – firm folds

Here is the WIRED link: EV Startup Aptera Motors Pulls the Plug: “The company that brought us a three-wheeled sperm-shaped two-wheeler shuts its doors after four years.” More here: The 190 MPG Aptera electric care that never was.

No kidding. My faith in government bureaucrats to make successful commercialization picks is, as we used to say in Nevada, lower than a snakes belly in a wagon rut. How many Department of Something-or-Other types do you think have the slightest idea of what Porter’s Five Forces are? And that’s a 30-year-old framework in strategy. Don’t even get me started on the open invitation to political corruption that these policies tend to create.

Those who worry about our dependence on foreign oil – a worry I share, by the way – often cite historic examples of government projects that successfully developed new technologies that would never have seen the light of day (or, at best, would have seen it decades later) had the country relied on the private sector to do it.  The Manhattan Project to develop the nuclear bomb during WWII is a favorite citation.

The problem we are seeing today is that the government is presently throwing money at firms claiming they can commercialize green technologies that, in reality, have not yet passed the basic development stage. You can’t get private investors to ante up when taxpayers are shouldering half the risk? That’s a very strong signal that those who spend their lives evaluating such things believe your technology is not ready for prime time. There is a big difference between government involvement in basic technology and government involvement in its commercialization.

Now, if folks are really serious about a Manhattan Project-style effort to, say, develop an efficient electric car, then let’s do it right! Get the smartest scientists from the top schools, fence them in at a top-secret facility in the middle of some desert, and don’t let them out until they succeed. I think that might work. And, I’m pretty sure the scientists’ home institutions would go for it.

Then, turn the technology over to the VCs to compete in the commercialization stage.

 


2 Comments on “DOE makes $150m loan conditional on matching private funds – firm folds”

  1. Rich Makadok says:

    Comparisons to the Manhattan Project are a non sequitur. There wasn’t much consumer demand (or industry demand, for that matter) for nuclear bombs. Same thing for lunar landings.


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