Then he threw away the battery swap demo and never talked about it again.
Its a combination of idiotic governance + a conman / liar at work. The government tax credit is a decent idea to spur innovation, but only if the government actually rewards money correctly. If it gives out money too freely, then the companies will just eat the government's face... they'll take the money but never actually develop the technology.
p.s. can you stop name-calling?
And we all know that swapping $15,000 batteries out for free ain't a valid business model and never will be a valid business model. It was a project designed to maximize the California incentives and minimize the costs to Tesla for obtaining that money.
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I hope that the citizens of California learned their lesson. But even if they refuse to learn, I've learned very much from that episode.