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Tesla Motors, the US electric vehicle manufacturer, has paid of its entire Department of Energy loan.
The DoE granted Tesla a loan in 2010 as part of the Advanced Technology Vehicle Manufacturing (ATVM) program; as part of the terms of the loan Tesla had to match the deal with its own capital, and meet certain milestones.
Tesla repaid part of the loan in 2012, and then again at the beginning of 2013, but following a recent share offering of common stock and the sale of senior notes, which helped raise nearly $1 billion, Tesla decided to pay off the remaining $451.8 million with interest.
The payment, made on the 22nd of May, means that Tesla is nine years early in paying back the loan, according to the DoE.
Elon Musk, Tesla’s CEO, said, “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. I hope we did you proud.”
Newly appointed Secretary of Energy Ernest Moniz said that, “when you’re talking about cutting-edge clean energy technologies, not every investment will succeed — but today’s repayment is the latest indication that the Energy Department's portfolio of more than 30 loans is delivering big results for the American economy while costing far less than anticipated.
The Department first offered loans to Tesla and other auto manufacturers in June 2009, when car companies couldn’t get other financing and many people questioned whether the industry would survive. Today, Tesla employs more than 3,000 American workers and is living proof of the power of American innovation.”
By. Charles Kennedy of Oilprice.com
Charles is a writer for Oilprice.com