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Tesla Paid $465 Million Government Loan 9 Years Early

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By Myles Collier, Christian Post Contributor
May 23, 2013|2:51 pm

Electric car manufacture Tesla announced that it had repaid its $465 million government loan with interest nearly a decade before it was due.

While the news of a profiting and growing company is good, Tesla is sadly the exception and not the rule. Of the 33 companies that were given government loans that totaled $34 billion, Tesla is the only one to have paid of the entirety of their loan.

The loans were issued under Advanced Technology Vehicle Manufacturing program that was part of the Obama administration's commitment to invest in green technology.

"Tesla employs more than 3,000 American workers and is living proof of the power of American innovation," U.S. Energy Secretary Ernest Moniz said in a statement. "This is another important contribution to what the Obama Administration has done to preserve and promote America's auto industry. This announcement is also good news for the future of America's growing electric vehicle industry."

Tesla made a payment of $451.8 million on Wednesday, which was comprised partly from $1 billion in funds raised from the company's offering of common stock and convertible senior notes. Tesla did receive the smallest loan under the program which gave Ford $5.9 billion, Nissan $1.4 billion and Fisker Automotive $529 million.

"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," Tesla CEO Elon Musk said in a statement. "I hope we did you proud."

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Many politicians were supportive of the news and saw this as a great step in government-supported innovation.

"Federal investment in any innovative clean energy application carries risk, but, as Tesla has demonstrated, it can also create jobs, keep us a world leader in clean energy development, and provide a return on investment to taxpayers," Rep. Anna Eshoo said in a statement. Tesla headquarters are located in her district.

"As America faces spiking gas prices and extreme weather conditions, clean energy projects continue to be vital to our nation's economic and environmental future," she added.

 

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