Tesla Motors becomes the first electric vehicle company to fully pay back the Department of Energy. As of May 22, the company has said that it fully paid the government back for a $465 million loan it received in 2010 from the Department of Energy (DOE). The company announced it had wired $451 million to the government, which accounted for the entire loan and interest.
Tesla founder Elon Musk said earlier this spring at a DOE-sponsored conference that the company would be able to pay off the loan five years earlier than expected. The loan actually ended up being repaid nine years earlier. This half-billion dollar loan was used to build manufacturing plants in California for the Model S sedan and for battery, motor, and electrical equipment assembly. After meeting its targets, the loan was repaid through $1 billion raised in last week’s stock offering. In a statement, Musk thanked the Energy Department, Congress and taxpayers for helping the company. “I hope we did you proud,” he wrote.
The 100,000th plug-in electric vehicle in the U.S. was sold earlier this week, demonstrating proof that the market is starting to accelerate. According to Eric Wesoff’s article, Tesla shares surged 12 percent in after-hours trading on news that the company reached profitability in Q1 for the first time in its ten-year history, with a profit of $15 million on sales of $562 million for the quarter — a record for the EV producer. Telsa has also raised its 2013 guidance to selling 21,000 electric vehicles instead of 20,000. Telsa expects operational expenses and R&D expenses to increase next quarter as more dealerships and service centers are built.
Source: Telsa Motors Repays Its Government Loan in Full, by Stephen Lacy, May 22, 2013