Tesla Motors fully repays $465 million federal loan nine years early

[Pitt Gorilla]

http://www.mercurynews.com/business/...n-federal-loan

PALO ALTO -- In a huge boost for the Obama Administration and clean-energy firms, electric vehicle maker Tesla Motors (TSLA) announced Wednesday that it has paid back its $465 million government loan in full and nine years early.
The Department of Energy oversees $34 billion in taxpayer-funded loans for clean energy and other projects, but Tesla is the only United States car company in the vast portfolio of 33 projects to pay back its loan so far. The loan program faced fierce partisan fire in the wake of the high-profile 2011 bankruptcy of Fremont solar manufacturer Solyndra, and Republican presidential candidate Mitt Romney called Tesla a "loser" in a presidential debate last fall.

"Tesla employs more than 3,000 American workers and is living proof of the power of American innovation," U.S. Energy Secretary Ernest Moniz said in a statement. "This is another important contribution to what the Obama Administration has done to preserve and promote America's auto industry. This announcement is also good news for the future of America's growing electric vehicle industry. While the market has taken longer than predicted to get going, sales of electric vehicles in the U.S. tripled last year and are continuing to increase rapidly in 2013. Teslaand other U.S. manufacturers are in a strong position to compete for this growing global market."

Tesla's DOE loan was through the Advanced Technology Vehicle Manufacturing, or ATVM, program, which was chartered by Congress and signed into law by President George W. Bush with a goal of accelerating the market for energy-efficient cars, including electric vehicles. Tesla made its application while President Bush was still in office, and Tesla's ATVM loan was the smallest awarded: Ford received $5.9 billion, Nissan $1.4 billion and Fisker Automotive $529 million.

Tesla made payments on it loan in 2012 and in the first quarter, and Wednesday's wired payment of $451.8 million repaid the full loan with interest. The payment was made using a portion of the $1 billion Tesla raised last week through offerings of common stock and convertible senior notes.

"I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the ATVM program, and particularly the American taxpayer from whom these funds originate," Tesla CEO Elon Musk said in a statement. "I hope we did you proud."

Rep. Anna Eshoo welcomed the news; Tesla's Palo Alto headquarters is in her district.

"Federal investment in any innovative clean energy application carries risk, but, as Tesla has demonstrated, it can also create jobs, keep us a world leader in clean energy development, and provide a return on investment to taxpayers," Eshoo said. "As America faces spiking gas prices and extreme weather conditions, clean energy projects continue to be vital to our nation's economic and environmental future."

Analysts said the move frees Tesla from the partisan politics that have shadowed federal government support for Silicon Valley clean energy companies.

"Paying off the DOE loan allows Tesla to be free of criticism related to DOE loan programs," said Andrea James, an analyst with Dougherty & Company. "Tesla still receives government incentives in the form of tax credits on unit sales and state-based regulatory credits, but that is piecemeal compared to the DOE loan program, which was so politically charged."

[stonedstooge]

So they paid back a "loan" and its a huge boost for the O'Bama Administration? Loans are made to be paid back aren't they?

[ClevelandBronco]

Originally Posted by stonedstooge

So they paid back a "loan" and its a huge boost for the O'Bama Administration? Loans are made to be paid back aren't they?

Not the ones our government owes.

[CoMoChief]

The fact that they even got a loan to begin with is disturbing.

[RNR]

Nothing about a company that took a loan thrived and paid it off early while creating jobs sucks~

[theelusiveeightrop]

Big news. Why does this matter?

[Pitt Gorilla]

Originally Posted by theelusiveeightrop

Big news. Why does this matter?

American jobs are sweet.

[RNR]

Originally Posted by theelusiveeightrop

Big news. Why does this matter?

With all the fail and bad news it is very refreshing to read about a planted seed that produced fruit~

[RaiderH8r]

Originally Posted by RNR

Nothing about a company that took a loan thrived and paid it off early while creating jobs sucks~

Except...didn't they just screw the treasury out of 9 years of interest payments?

[RNR]

Originally Posted by RaiderH8r

Except...didn't they just screw the treasury out of 9 years of interest payments?

[2bikemike]

I wouldn't mind owning a Tesla, IMHO they have done a pretty damn good job of designing and bringing to market stylish quality cars. I have seen a few in person and they are quite nice. I hope they hold up well and as technology matures the prices come down.

[Prison Bitch]

So the OP posts an article which states: "Tesla is the only United States car company in the vast portfolio of 33 projects to pay back its loan so far" as some sort of proof of success?



He's basically admitting that a 3% success rate is good in the mind of today's Liberal.

[blaise]

Good news: Obama did it.
Bad news: Out of Obama's control.

[Saul Good]

This is good news. Now, they just need to actually sell a car.

[bsp4444]

Originally Posted by Prison Bitch

So the OP posts an article which states: "Tesla is the only United States car company in the vast portfolio of 33 projects to pay back its loan so far" as some sort of proof of success?



He's basically admitting that a 3% success rate is good in the mind of today's Liberal.

It's not a failure because it wasn't paid back early...bitch.