Tesla paid off the entire balance of DOE loan

Article by Christian A., on May 23, 2013

Tesla Motors announced today that it paid off the entire balance of its U.S. government loan awarded to the company by the Department of Energy in 2010. What is very interesting is that Tesla paid off the entire balance nine year early, as the deadline was in 2022. "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," said Tesla in a statement.

As a result, Tesla Motors becomes the only American car company to have fully repaid the government [under the DOE program]. The loan was paid 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 a.k.a. Tesla’s Chief Executive Officer (CEO) and cofounder also 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.”

Tesla’s first fully electric sedan, the new Model S could be considered as an innovation in the field automotive engineering. It doesn’t only blend performance and efficiency, but also safety. In fact, the new Tesla Model S has earned the highest possible safety ratings. Moreover, the new Tesla Model S boasts of having the longest range among electric vehicles. In addition, it just keeps getting better thanks to over-the-air software updates that continuously make it better.

Underpinned by Tesla’s platform, the Model S features a battery located on the floor. This layout gives the Model S a low center of gravity, which in turns reduces risk of rollover while improving both performance and handling. The absence of a conventional engine means that the crumple zone for the new Tesla Model S is larger than other performance sedans, which allows it to better absorb the energy during a front-end collision.

As designed, electric drivetrain located beneath the Model S allows the car to become one of the safest on the road. This gives the Model S a low center of gravity for a lower risk of rollover. This has been proven by the fact that it has been given the highest safety ratings from Euro NCAP and from NHTSA. In addition, it boasts of having the lowest likelihood of injury to occupants, following tests in the United States.

Also contributing to the safety levels in the Tesla Model S are active safety features that are fitted as standard like automatic emergency braking and blind spot detection as well as collision warning and lane departure warning. The new Model S could also be fitted with optional convenience elements like autopark, autosteer and summon as well as traffic-aware cruise control.

Propulsion for the new Tesla Model S is provided by two electric motors, one on the front and the other on the rear. Through these motors, the Model S could digitally and independently managed torque to the front and rear wheels, thereby providing a whole new level of traction control in any situation. Whereas conventional all-wheel drive vehicles usually have to compromise fuel efficiency just to attain a higher level of traction, the Electric All Wheel Drive system on the Model S actually help hike the car’s efficiency.

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Topics: tesla

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