By on May 14, 2012

Tesla Motors has almost used up funds from a Department of Energy loan program – but the startup car maker also says that they’ll start paying back the money at the end of 2012.

Regulatory filings made by Tesla show that the company still has nearly $104.5 million in DOE money left over, and claims that deliveries of the Model S will begin in June. Tesla’s CFO told Automotive News that the money is earmarked for the company’s third quarter, with re-payments starting in December.

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7 Comments on “Tesla To Pay Back DOE Loans By Year End...”


  • avatar
    gslippy

    Good news; hopefully they can pay back the full $465 million, but it will take some time given their low sales volume.

    The Model S is one of the most beautiful cars in the world, so maybe that will help sales.

  • avatar
    02Eurovan

    Wow, that headline is utterly misleading. How about Tesla to start paying back loans. As written it implies all loans will be paid back by the end of the year.

    • 0 avatar
      CJinSD

      And did you notice that they’re using the GM loan repayment model of borrowing far more than they need and then using some of the left-over to start making loudly announced token payments on their debt? Are people really mindless enough to fall for this, or do they think they’re serving some higher purpose by claiming it is indicative of profitability?

  • avatar
    Thinkin...

    Actual editorial question: Why use “claims” instead of “announced” in regards to Tesla’s statement that deliveries of the model S would start in June.

    “Tesla announced that the Model S…” vs. “Tesla claims that the Model S…”

    Neither is incorrect, but they have very different meanings. Using the word “claims” shifts the tone of the article towards skepticism, foregrounding the author’s personal views over the article’s content. Employing the term “announced,” on the other hand, is simply citing facts: Tesla did announce this, and whether or not it will actually happen remains to be seen.

    As a writer and editor myself, I would imagine that the intent of the above article is simply to convey a couple newsworthy facts. If, however, the use of “claims” is part of an organizational TTAC view that Tesla will never deliver, I must’ve missed that post.

    (No doubt Musk is crazy, but it actually looks like the Model S will hit production. Whether or not they can make enough money to produce cars in a real volume is anybody’s guess! I hear the Tucker was a pretty sweet car…)

    • 0 avatar

      Elon Musk IS crazy, but I have a soft spot for Tesla. Of all the startups that grabbed at the DOE loan teat, Tesla is the only one that seems to be accomplishing something genuinely worthwhile.

      I still think he shouldn’t have fired Martin Eberhard. Eberhard should have been kicked upstairs as chief visionary and promoter, which was something he was unparalleled at. Eberhard’s tireless promotion convinced me (and, I think, many others) that an electric car just might be a viable solution.

      I wonder how he’s doing at VW – anyone know?

      D

  • avatar
    FreedMike

    This headline needs to be corrected…

  • avatar
    Friends in high places

    I saw this on another blog and had to show it to you here.. funny:

    “I “plan” to date model Kate Upon… which pretty much means it is not going to happen. This is ultimate spin from Tesla because they screwed the pooch and nobody wants a Tesla, nobody wants Solar City panels and Space X rockets keep failing so Musk is freaking out and traded some BS warrants with DOE to make this cover-up announcement which means totally nothing. Nobody wants to be seen driving a Tesla, it is the most tainted car on earth and the poster car of corruption. What means something is that any real car company sells 100,000 cars of each model and usually 400,000, or more cars. Tesla has only sold a few hundred to its own investors as fake shill customers after a decade of trying and nearly a billion dollars of free tax money…

    Taxpayers should call their Senator today and demand to their elected representative that BILLIONAIRE Musk pay the money back NOW and get off the taxpayers teat.

    FAIL! FAIL! FAIL!


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