Tucker was unable to make the cars for a cost-effective price, so he went out of business.
Here are three very scary quotations from Wikipedia's article on Tucker. Really, really scary. Even the Road Tour comes straight out of Tucker's venture:
Having raised $17,000,000 in a stock issue (equal to $179,551,416 today), one of the first speculative
IPOs, Tucker needed more money to continue development of the car. He sold dealerships and distributorships throughout the country. Another money maker was the Tucker Accessories Program. In order to secure a spot on the Tucker waiting list, future buyers could purchase accessories, like seat covers, radio, and luggage, before their car was built. This brought an additional $2,000,000 (equal to $21,123,696 today) into the company.
With the final design in place, Preston Tucker took the pre-production cars on the road to show them in towns across the country. The cars were an instant success, with crowds gathering wherever they stopped. One report says that Tucker was pulled over by a police officer intent on getting a better look at the car.
To prove the road-worthiness of his cars, Tucker and his engineers ran several cars at the Indianapolis Motor Speedway in several endurance tests. During this testing, car #1027 was rolled three times at 95 miles per hour (153 km/h), and the driver (chief mechanic Eddie Offutt) walked away with just bruises. During the crash, the windshield popped out as designed, verifying Tucker's safety features were effective. Afterwards, upon replacing a damaged tire, the car started up and was driven off the track.
Engine problems at "first run demo":
The world premiere of the much-hyped Tucker '48 car was set for June 19, 1947. Over 3,000 people showed up at the Tucker factory in Chicago for lunch, a train tour of the plant, and the unveiling of the first Tucker prototype. The unveiling appeared doomed, however, as last-minute problems with the car cropped up. The night before the premiere, two of the prototype's independent suspension arms snapped under the car's own weight. (The prototype was extremely heavy; much heavier than the other Tucker '48's.) Minor engine problems were fixed, and the car was presentable by the time of the premiere. However, the experimental 589 engine was extremely loud. Tucker told the band to play as loud as possible to drown out the noise. As the car was driven on to the platform, the liquid coolant boiled over and some steam escaped from the car, but no one seemed to notice.
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As development costs soared, Tucker tried raising money by selling accessories prior to the availability of the car, leading to an SEC investigation:
One of Tucker's most innovative business ideas caused trouble for the company, however. His Accessories Program raised funds by selling accessories before the car was even in production. After the war, demand for new cars was greater than dealers could supply, and most dealers had waiting lists for new cars. Preference was given to returning veterans, which meant that non-veterans were bumped down on the waiting lists indefinitely. Tucker's program allowed potential buyers who purchased Tucker accessories to obtain a guaranteed spot on the Tucker dealer waiting list for a Tucker '48 car.
Here, but for the grace of actually listening to history, goes Elio. Let's just hope Paul does it better than Tucker did.