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.

Tesla Model S is equipped with two motors – one at the front and the other at the rear – enabling the car to independently and digitally control torque to both front and rear wheels. This results to unparalleled traction control given any road condition. Moreover, the Tesla Electric AWD or All-Wheel Drive system improves the car’s efficiency, unlike conventional AWD vehicles that deliver increased traction at the expense of fuel efficiency.

What’s more, the Model S is the fastest 4-door sedan to ever be built, reaching 0-60 mph in just 2.8 seconds.

The car boasts impressively low center of gravity, which results to optimal and superior handling. This low center of gravity is mainly due to the battery pack’s position along the car’s floor pan, right in the middle of the axles. This ideal placement of mass is unrivaled by any other production car.

Furthermore, Tesla Model S has no internal combustion engine, allowing for a spacious cabin that can accommodate five adults and two kids, as well as additional cargo space.

In addition, the Model S features a 17-inch center touchscreen that seamlessly integrates navigation, cabin control, communications, media, and vehicle data into a single intuitive interface. There are also many other functions incorporated on the instrument panel, and these are voice-activated in order to keep the driver's focus on the road ahead.

With the Model S, you can travel anywhere without needing even a drop of gasoline. The car’s efficiency has received an EPA rating of 90 mpg.

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Topics: tesla

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