The new Tesla Motors Model S electric sedan. Zowee!! Count me in!

Tesla Motors, the car company famous for the Lotus derived electric super sports car, has found one way to deal with it’s cash flow and money problems created in part by founder Elon Musk’s falling in with the wrong management crowd. Such problems in the management have since been remedied, and now Daimler AG comes along and drops $50 million into Tesla’s coffers.

One would presume that a cash infusion isn’t all the aoutomaker will be getting. Obviously Diamler is world reknowned for their engineering prowess, and it’s only logical that some of that expertise would make it’s way to San Carlos, allowing further improvements to Tesla’s autos and production facilities. In addition, the much needed capital provides the financing Tesla needs to continue development on their new Model S.

Like their sports cvar, the new Model S sedan looks to be a stunning performer, with a 0-60 time promised  in the mid 5 second range. Speaking of range, the Model S should get about 300 miles before the last juice drains from the batteries, although I doubt you’ll be doing too many mid 5 second 0 – 60 runs and still going 300 miles between charges.

Speaking of the batteries, Diamler also will use tesla’s Li-Ion batteries for their electric  car efforts. The real thrill is the fact that Tesla will now be able to get their Model S production underway. Priced at about half the going rate for the roadster, or between $50,000 and $55,000, Tesla’s Model S is an electric car that could prove to be the kind of electric vehicle that could finally woo drivers from their fossil fuel powered vehicles. It looks great, has more than adequate performance, and holds 5 people and their luggage in comfort.

That’s a car people can really get behind, and they’ll have to, because it won’t need to stop for gas and it beats most vehicles in an acceleration contest to freeway speeds. That means you’ll either be in one, or chasing it. Although it is still far too expensive for the average driver, remember that President Obama’s announcement today of increased fuel efficiency standards means that traditional cars will quickly become more expensive. They will have to in order to pay for the technology required to rapidly implement the new fuel mileage rules. When setting such things, politicians would do well to remember the development cycle of the modern vehicle (about 3 – 5 years), and the fact that an advanced technology vehicle will typically have an even longer cycle.

This price increase will narrow the gap somewhat. Performance electric vehicles will continue to drop in price as more manufactiurers introduce their own designs, and production facilities ramp up. In addition, electric cars are elligible for a tax rebate, which not only makes them more affordable, it makes sure that your neighbor, who may not have been able to spring for a $50,000 car, helps you pay for yours. Ahhh, the joy of Government subsidies! After all, when the government helps someone pay for something, we’re all helping to pay for it.

By the way, when the government starts telling car companies how much they can spend for marketing (as they recently did to Chrysler), all businesses should look around. Sure, they bailed out the car manufacturers, big time, but how do the Feds think the car companies sell their cars anyway? Marketing, anyone?