WHO'S the ONLY AMERICAN CAR COMPANY TO HAVE PAID BACK the GOVERNMENT?

Model S Signature - Signature Red


TESLA REPAYS DEPARTMENT OF ENERGY 

LOAN NINE YEARS EARLY

WEDNESDAY, MAY 22, 2013
PALO ALTO, Calif.--

 Tesla Motors announced that it has paid 

off the entire loan awarded to the company by the Department of 

Energy in 2010. In addition to payments made in 2012 and Q1 

2013, today’s wire of almost half a billion dollars ($451.8M) repays 

the full loan facility with interest. Following this payment, Tesla will 

be the only American car company to have fully repaid the 

government.
For the first seven years since its founding in 2003, Tesla was 

funded entirely with private funds, led by Elon Musk. Tesla 

brought its Roadster sports car to market with a 30% gross margin, 

designed electric power trains for Daimler (Mercedes) and had done 

preliminary design of the Model S all before receiving a government 

loan.

In 2010, Tesla was awarded a milestone-based loan, requiring 

matching private capital obtained via public offering, by the DOE 

as part of the Advanced Technology Vehicle Manufacturing 

program. This program was signed into law by President Bush in 

2008 and then awarded under the Obama administration in the 

years that followed. This program is often confused with the 

financial bailouts provided to the then bankrupt GM and Chrysler, 

who were ineligible for the ATVM program, because a requirement 

of that program was good financial health.

The loan payment was made today using a portion of the 

approximately $1 billion in funds raised in last week’s concurrent 

offerings of common stock and convertible senior notes. Elon Musk, 

Tesla’s Chief Executive Officer and co founder, 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. “I hope we did you proud.”

Speaking as an American Taxpayer I salute you, thank-you, I will be 

a walking talking advertisement for your company, in conversations 

of how the rich get richer & the government gives away money, I will speak

 your name proudly and recite your praises!