Tesla announced plans to pay down their $465 million dollar Department of Energy loan in 5 years or less, as Tesla seeks to achieve profitability.
Automotive News reported on comments made by Tesla CEO Elon Musk while attending a conference in the Washington, D.C. area
That loan currently must be repaid within 10 years, Musk said. Tesla will “codify” a commitment with DOE to reimburse the government within five years or less, Musk added, after declaring that the loan guarantee should be “viewed as a success.”
In addition to Tesla, Ford, Nissan and Fisker all received loans under the $25-billion dollar program Advanced Vehicle Technology Manufacturing program, which was introduced by President George W. Bush.
Ford and Nissan’s loans are worth $5.9 billion and $1.4 billion respectively, and Energy Secretary Steven Chu said that he expects to be paid back in full by the auto makers, despite other loans that “…may be at risk”. According to Tesla’s 10-Q filing for Q4 2012, the company made its first loan payment of $12.7 million on schedule, with the next payment due in March.