Tesla Pays Off All $465M in Federal Loans 9 Years Early
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Tesla Pays Off All $465M in Federal Loans 9 Years Early
http://www.wired.com/autopia/2013/05...off-fed-loans/
Good for them!
Tesla haters just lost another quiver in their dwindling arsenal. The upstart electric automaker has paid off the entirety of its Department of Energy loan — a whopping $451.8M — and did it nine years ahead of schedule.
“I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the [Advanced Technology Vehicle Manufacturing] program, and particularly the American taxpayer from whom these funds originate,” Tesla CEO and co-founder Elon Musk said in a statement. “I hope we did you proud.”
The repayment of the DoE loans comes just weeks after Tesla reported its first profit after 10 years in the car-making business. And thanks to a stock offering last week that raised $1 billion, it was able to repay the balance of its federal loans.
Tesla is also crowing about the fact that it’s the first American automaker that has fully paid back the feds through the Advanced Technology Vehicle Manufacturing (ATVM) program. But then again, Tesla didn’t take much compared to Ford ($5.9 billion) and Japanese automaker Nissan ($1.4 billion).
This payoff comes at particularly opportune time. Other clean energy initiatives and the companies the feds funded have been dropping like flies, with high-profile implosions like Solyndra and Fisker firing three-quarters of its staff after being stuck in limbo for the better part of a year.
U.S. Energy Secretary Ernest Moniz addressed this fact in conjunction with the Tesla announcement, saying, “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.”
But for Tesla, the game is just beginning. The Model S is selling well, with the automaker boosting its production estimates to 21,000 deliveries worldwide by the end of the year. Up next is the Model X SUV, based on the Model S platform, which has been slightly delayed until early 2014. And then there’s Tesla’s real goal: to create an affordable EV for the masses. That’s not coming for at least another two to three years, but work is assuredly well underway.
As for Musk, one of the stipulations in the DoE loans was that he would have to stick around as CEO until the company repaid the feds. But according to a Tesla spokeswoman, “Musk has no plans of leaving as CEO and has always intended to see the company through to its mass-market car.”
“I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the [Advanced Technology Vehicle Manufacturing] program, and particularly the American taxpayer from whom these funds originate,” Tesla CEO and co-founder Elon Musk said in a statement. “I hope we did you proud.”
The repayment of the DoE loans comes just weeks after Tesla reported its first profit after 10 years in the car-making business. And thanks to a stock offering last week that raised $1 billion, it was able to repay the balance of its federal loans.
Tesla is also crowing about the fact that it’s the first American automaker that has fully paid back the feds through the Advanced Technology Vehicle Manufacturing (ATVM) program. But then again, Tesla didn’t take much compared to Ford ($5.9 billion) and Japanese automaker Nissan ($1.4 billion).
This payoff comes at particularly opportune time. Other clean energy initiatives and the companies the feds funded have been dropping like flies, with high-profile implosions like Solyndra and Fisker firing three-quarters of its staff after being stuck in limbo for the better part of a year.
U.S. Energy Secretary Ernest Moniz addressed this fact in conjunction with the Tesla announcement, saying, “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.”
But for Tesla, the game is just beginning. The Model S is selling well, with the automaker boosting its production estimates to 21,000 deliveries worldwide by the end of the year. Up next is the Model X SUV, based on the Model S platform, which has been slightly delayed until early 2014. And then there’s Tesla’s real goal: to create an affordable EV for the masses. That’s not coming for at least another two to three years, but work is assuredly well underway.
As for Musk, one of the stipulations in the DoE loans was that he would have to stick around as CEO until the company repaid the feds. But according to a Tesla spokeswoman, “Musk has no plans of leaving as CEO and has always intended to see the company through to its mass-market car.”
Good for them!
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Fwark, not bad at all. Now all they need to do is smooth out those software bugs that prevent the doorhandles from working and everything will be groovy.
I wanted to like the S, maybe I can now.
I wanted to like the S, maybe I can now.
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Thats BS.... Of course your car company can do well when the govt backs you. I could sell a bunch of "x" powered cars if the govt gave rebates and tax breaks for people that buy "X" powered cars....
That is the govt cheating so push its own agenda further. Want to push "A-M"? All you have to do is ban or heavily tax and punish "N-Z" and you are golden. Doing covert, backdoor, illegal acts since you can't actually overtly effect it.
GE's 'waste of money' wind energy is doing great too.....dispite the fact that they cost more money than they take in and go against all capitalist logic of making money.
So the govt needs to collect on loans, how to help the people you loan money to....Hey, lets punish the rest of the non-loan people who actually are doing it right and reward the people that suck, that is how we can get our money back!
That is the govt cheating so push its own agenda further. Want to push "A-M"? All you have to do is ban or heavily tax and punish "N-Z" and you are golden. Doing covert, backdoor, illegal acts since you can't actually overtly effect it.
GE's 'waste of money' wind energy is doing great too.....dispite the fact that they cost more money than they take in and go against all capitalist logic of making money.
So the govt needs to collect on loans, how to help the people you loan money to....Hey, lets punish the rest of the non-loan people who actually are doing it right and reward the people that suck, that is how we can get our money back!
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That was quite the rant. 
If you want to talk conspiracy, read the story about the EV1 from GM. Everyone of those cars were crushed for no reason and the program was cancelled
The government has no interest in seeing everyone driving electric cars, the reason is obvious.
http://en.wikipedia.org/wiki/General_Motors_EV1
Edit- and to get back on topic. Tesla's are cool but I can't see them producing/selling an affordable EV that everyone can/will buy.
If you want to talk conspiracy, read the story about the EV1 from GM. Everyone of those cars were crushed for no reason and the program was cancelled
The government has no interest in seeing everyone driving electric cars, the reason is obvious. http://en.wikipedia.org/wiki/General_Motors_EV1
Edit- and to get back on topic. Tesla's are cool but I can't see them producing/selling an affordable EV that everyone can/will buy.
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Eventually, they will. The new Model X SUV is going to to a little less expensive. Remember, when the automobile first became available, only the rich could buy them. It took Henry Ford to make them cheap enough for the upper middle class to afford them. I don't doubt that given enough time Elon Musk can be the Henry Ford of Electric Cars.
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The Mitsu and Nissan EV's are overpriced, usless and small. I'm talking about a full electric car that will fit the family and have a decent amount of space, that costs under 25K.
Even then, would anyone buy one?? I know I wouldn't.
Who's to say once more people buy/own EV's that the price of electricity won't sky rocket? You know it will happen. And anyone who buys an EV because they think it's better for the planet or green is crazy (unless you charge it with wind or solar power). If I owned one I would be charging it with power generated from a coal power plant.
I'll stick with my tried and tested combustion engine thank you.
Even then, would anyone buy one?? I know I wouldn't.
Who's to say once more people buy/own EV's that the price of electricity won't sky rocket? You know it will happen. And anyone who buys an EV because they think it's better for the planet or green is crazy (unless you charge it with wind or solar power). If I owned one I would be charging it with power generated from a coal power plant.
I'll stick with my tried and tested combustion engine thank you.
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First, most electrics emit the same as an internal combustion car getting around 100mpg. Second, if the gov't would stop bending to lobbyists and would make power generators clean up their emissions as much as cars have had to clean up, that number would increase dramatically. We car buyers don't have a lobby group to tell the government we're tired of footing 100% of the bill for decreasing emissions.