Tesla may fully repay DOE loan as early as Wednesday

Article by Anita Panait, on May 21, 2013

Tesla Motors Inc. may fully repay a loan taken from the United States Department of Energy early as Wednesday, chief executive Elon Musk said in a message on Twitter. Musk also tweeted that Tesla would postpone an announcement about its charging station network to next week. Musk’s tweet says “Given govt loan repayment this week (prob Wed), Supercharger update will be next week."

A Tesla spokeswoman confirmed to Reuters that Musk was referring to a full repayment of its DOE loan.

Tesla said last week that it would use $452.4 million from a bond and stock offering to repay the remainder of the loan with interest. Tesla received the loan in June 2009 to finance the development and production of its Model S electric car, which has a starting price of $70,000 before a federal tax credit.

Tesla was given until December 2022 to fully repay the loan.

The advance payment is what differentiates Tesla from Fisker Automotive Inc. and other large carmakers which availed of the DOE loan. Ford Motor Co. and Nissan Motor Co. were given a standard of 10 years to fully repay their loans, which amounts to $5.9 billion and $1.4 billion loan respectively.

Fisker, on the other hand, has missed a loan payment and is at the brink of financial collapse after stopping production in 2012 and sending off most of its employees in April 2013. Tesla completed drawing down its loan funds as of Aug. 31, 2012, and has made at least $25 million in payments to the DOE, according to company filings.

Topics: tesla

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