AUTO INDUSTRY NEWS

Tesla repays US Department of Energy loan ahead of deadline

Tesla repays US Department of Energy loan ahead of deadline image

Text: / Photos: Tesla Motors Press | posted May 23, 2013 14:23

Nine years ahead of deadline

Tesla Motors announced that it has paid off the entire loan awarded to them by the USA Department of Energy last 2010. In addition to payments made in 2012 and Q1 of 2013, Tesla Motors paid the rest of the balance worth almost half a billion dollars ($451.8M) with interest.

Following this payment, it makes Tesla Motors the only American car company to have fully repaid the government.

It can be remembered that in 2010, Tesla was awarded a milestone-based loan by the DOE as part of the Advanced Technology Vehicle Manufacturing program. This program is different from the financial bailouts provided to fellow car manufacturers like GM and Chrysler because they were ineligible for the AVTM program, because the basic requirement of that program was good financial health.

Elon Musk, Tesla's Chief Executive Officer and cofounder, purchased $100 million of common equity, the least secure portion of the offering. "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," said Elon Musk, CEO and co-founder, Tesla Motors. "I hope we did you proud."