Tesla To Pay Down DoE Loan In 5 Years Or Less
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.
More by Derek Kreindler
Comments
Join the conversation
Musk will just write a check out of his personal account.
Unless it's cold outside, in which case they get to pay it off over 15 years.
So.. let's say in 5 years, Tesla is fairly successful, but not successful enough to pay back $465 million dollars. What happens?
Who gives a toot what Elon Musk "declares", or "codifies." Either you pay, or you don't. All else is just mindless babble, for consumption by well indoctrinated drones gullible enough to believe anything anyone involved in this nonsense says, is any more than randomly related to some sort f objective reality. It's like listening to the monkeys in DC yapping about "reducing the deficit by blah, blahh percent in 20 years......." Just pure nonsense. 100%.