Well said Jeff, I have not followed it carefully, although Fisker Karma was major client for A123 Systems, and it is assembled in Finland. Therefore it was reported also in Finnish media. There was speculation that inadequate demand for Fisker Karma was a contributor for the bankruptcy.
However i do not buy this excuse I would speculate that the real reason was that they started to do business with unfinished new product (Lithium phosphate battery) and they just could not make the technology cost effective. Therefore there was no point to continue, because it was not likely that the company could become profitable. Instead Tesla is trusting normal lithium ion batteries that have high reliability. Currently market for laptop batteries is 100 times bigger than for EV-batteries. Tesla's chosen strategy to use cheap and reliable laptop batteries was superior business idea. As Tesla manufactures own battery packs, they have pushed the cost already down to $600 per kWh and Elon Musk claims that they can still further push down the price. $600 per kWh is already starting to be price level that EV can bring better price performance than combustion engine in cars for higher middle class. If Elon can push the price to near $300 per kWh, then it would mean that Elon can sell every car that he can manufacture. Because already the performance of Tesla Model S is superior to that of combustion engine cars. Actually Model S performance is already similar than BMW M5. Both Model S and M5 cost around $100 000. M5 is slightly faster, but on the other hand, Model S accelerates better at parking lot! And probably Model S is cornering faster because of ideal center of gravity. —Jouni On 21 October 2012 20:15, Jeff Berkowitz <pdx...@gmail.com> wrote: > I haven't followed this story carefully, but a friend of mine (who has) > wrote the following: > > "Uh, you should look into A123 Systems, who started it and what they did > before criticizing them. These guys developed and improved the Lithium > Iron Phosphate battery chemistry while at MIT, then spun out a startup > company to commercialize their advances. They were chosen by GM to > engineer and build the Volt batteries. These guys aren't some fly by night > outfit who just blew smoke up some government officials asses to get that > loan. They were a prime startup candidate and had already received many > millions of dollars in venture capital backing. And they are being > purchased by Johnson Controls for $125 Million, they have assets of $460 > Million and debts of $376 Million, plus patents in the battery technology > field. > > It's disappointing to see stuff like this turned into a political football > for electioneering purposes. And even more disappointing to see educated > people swallowing it whole..." > > Jeff > >
