Tesla Repays Government Loan

Tesla

Electric carmaker Tesla Motors has repaid in full a U.S. Department of Energy loan, according to the Palo Alto, Calif.-based company.

Tesla said the $451.8 million wired today represented the balance, plus interest, of a $465 million loan awarded in 2010 under the DOE's Advanced Technology Vehicle Manufacturing Program. The program, which launched under President George W. Bush in 2007, has also benefited plug-in-vehicle development at Fisker Automotive, Ford Motor Co. and Nissan Motor Co. Tesla is the first company to repay its loan, with nine years to spare.

The payment comes a week after a Tesla stock offering that raised more than $1 billion — fueled, no doubt, by the first profitable quarter in the company's history as well as critical acclaim for the Model S that included Consumer Reports declaring it the best car it has tested since 2007.

Apart from being freed from the stigma associated with government investment, Tesla could garner additional goodwill from consumers and investors if the deal results in a profit, as some have predicted.

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By Joe Wiesenfelder | May 22, 2013 | Comments (4)

Comments 

Pretty impressive with the streamlined approach they have at Tesla. Wish them the best!

Ben

Tesla is incorrect in claiming they are first. Chrysler actually was two years ago.
http://blog.chryslerllc.com/blog.do?id=2081&p=entry

Jamez

Chrysler never paid off the entire $12.5 billion they borrowed under the Troubled Asset Relief Program (TARP). They only had to pay back $10.6 billion because in 2010 Obama's administration instructed the Treasury to write down $1.9 billion.

While Tesla is claiming they paid off their loan the debt is actually still there as they only moved the debt from one balance sheet to another. That's why the stock pushed down almost $5 when an Analyst questioned the CFO about their balance sheet.

Card13

Ben,

Tesla and Chrysler received different loans. Chrysler received a bailout along with GM to prevent the companies from going bankrupt. Tesla received an investment along with [bankrupt] Fisker to get the companies started.

Jamez,

Chrysler has paid back every dime that they owe to the bailout. The fact that the owed amount differs from the amount borrowed doesn't change that.

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