TESLA PAYS BACK DOE LOAN WITH INTEREST

Tesla Motors pays off Department of Energy advanced technology loan

Jerry Hirsch, May 22, 2013 (LA Times)

“Upstart electric car maker Tesla Motors…paid off a Department Energy loan that had become a political hot potato…Tesla owed the federal government $451.8 million on a loan that was part of a special program to develop alternative fuel vehicles and renewable energy sources…

“Tesla has raised about $900 million this month in stock and debt offering deals and is expected to raise another $100 million in the coming days…Its shares have more than doubled in the last year, helped by the automaker’s first-ever quarterly profit earlier this month and its success selling the Model S electric sports sedan…The Energy Department’s loan program, which includes major automakers such as Nissan’s U.S. division, gained notoriety after the 2011 bankruptcy of Solyndra…cost taxpayers more than $400 million…”

“Last month, Fisker Automotive of Anaheim defaulted on a similar loan, which could cost taxpayers $171 million…[Tesla will also use the money to expand sales abroad, develop its Model X, a sport utility vehicle, and start work on a less expensive vehicle that would extend its customer base and manufacturing volumes]… The [stylish, fast] Model S starts at about $62,000 and can top $100,000, depending on trim level and options…”

[Ernest Moniz, Secretary, Department of Energy:] “When you’re talking about cutting-edge clean energy technologies, not every investment will succeed…but today’s repayment is the latest indication that the Energy Department’s portfolio of more than 30 loans is delivering big results for the American economy while costing far less than anticipated.”

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