Notes Design

Randall Stross takes a reasoned yet contrarian look at everyone's favorite lust object, the Tesla Roadster. While anti-consumption seems to be the new black this holiday season, Stross fuses his economic logic with a soupcon of social justice.

If investors pass up the opportunity, however, why should taxpayers fork over the capital that Tesla needs? The Roadster is not much more than a functioning concept car that sells for $109,000. The company is requesting $400 million in low-interest federal loans as part of the $25 billion loan package for the auto industry passed by Congress last year.

The program is intended to encourage automakers to improve fuel efficiency, but should it be used for a purpose like this, as the 2008 Bailout of Very, Very High-Net-Worth Individuals Who Invested in Tesla Motors Act? Can you conceive any way that federal dollars could be put at greater risk — and for no equity in return, keep in mind — to benefit fewer people?

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Last week, I visited the Tesla showroom in Menlo Park, Calif., and took the Roadster out on the highway. As I headed back to the showroom and waited at red lights, ready to hit the accelerator and fly, I realized that I was experiencing a guilty pleasure derived not just from the speed available at my touch but also from temporarily possessing something that shouted to the world its exclusiveness.