Gas prices and Tesla

Gas prices are up again, and quickly.

Gas prices hit their all-time high on July 7, 2008, when the average price per gallon in the United States was at $4.00. After that, for (insert reasons here based on your political opinions), gas prices have dropped faster than people's weight on The Biggest Loser.

However, prices are up 44 percent since Jan. 1 and up 23 percent in the last month. The national average is $2.25 per gallon, up from $1.77 at the beginning of the year. Expect to be paying $3.00 again very soon.

However, how fast the gas prices rise and how far they rise is another question. The big 3 car companies are struggling primarily because of their failure to predict American's desire for high mileage cars due to high gas prices and concern for the economy.

As a result, Chrysler has declared bankruptcy, GM may do the same, and Ford is quickly eating up its cash reserves. However, all three are focusing heavily on producing high mileage cars which will compete with Toyota, which has become the world's largest car manufacturer.

If GM, Ford and Chrysler all have 40 mpg gas cars, hybrids, and electrics rifling off the assembly line by 2012...how high will gas prices get.

And this isn't even considering the upstart car company Tesla, which is being HEAVILY funded by Google co-founders Larry Paige and Sergey Brin. Tesla already produces an electric car (not hybrid, electric) which rivals Corvettes and Ferraris power and acceleration. The Tesla Roadster was Tesla's first car and has a several year waiting list of eager customers.

Tesla's business model is to work is way down the sticker price as fast as it can until it is producing an electric car for every market at every price range. Their second car, also electric (as all their cars will be) is the Model S, it costs $50,000, goes 0-60 in 5.6 seconds, goes 300 miles on one charge, and can recharge in 45 minutes.

I'll take one