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Tesla Motors

Tesla Motors to Receive $465 Million Loan from the Government

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From: OnCars.com

DoE giving boost to start-up electric car company

Posted 25 Jun 2009 10:25AM by Bill King

Tesla Motors will receive one of the first loans from the U.S. Department of Energy’s $25 billion automakers’ assistance program. The Silicon Valley electric car builder will use the funds to complete development of its Model S sedan and electric power trains being licensed to other auto manufacturers, such as Mercedes-Benz.

The DoE loan is reported to be $465m. Added to the $50m invested last month by Daimler plus the debt and equity already invested in the company, Tesla now sports a $700m capital war chest. Tesla plans to use $365m of the DoE monies to bring the Model S into production with the remainder going to customer power train development.

The sticker on the Model S should come in around $50k, or roughly half the price of the groundbreaking Tesla Roadster which absorbed all upfront development costs for the sporty little electric car.