Tesla Charged About Possible Government Loan

February 13, 2009

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Tesla Motors may be able to ramp up production of its electric cars if a $450 million government loan comes through as expected, the company’s chief executive officer indicated recently.

According to the San Jose Mercury News, in a newsletter to customers, CEO and chairman Elon Musk wrote, “I am excited to report that the Department of Energy informed Tesla last week that they expect to disburse funds … within four or five months.”

San Carlos, Calif.-based Tesla did not say its loan application had been approved. The San Jose Mercury News reported an Energy Department spokeswoman said the agency “has made no final decisions for specific applications for the auto-loan program.”

Tesla has requested $350 million toward retrofitting a factory to craft its Model S electric sedan and $100 million for making batteries.

Tesla has more than 1,000 customers on a waiting list for the $109,000 Tesla Roadster, a two-seat electric vehicle. Although only 200 roadsters have been produced thus far, Musk said it’s “highly likely” Tesla will become profitable by midyear, according to the article.

In addition to the Chevrolet Volt, Nissan intends to make an electric car for the U.S. market.

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Reader Comments

Um, you might want to rethink the headline, there. I get the pun, but until I read the story I thought it meant the CEO had been “charged” with a criminal offence.

Andrew Coyne | February 13th, 2009

Thanks – we’ve made an adjustment

Environmental Leader | February 13th, 2009

We can hope that many goverments and manufacturers realise that they need to work on electric cars now and not when the fuel runs out.Goverments must help the deigners to keep going despite the worlds money troubles.

ASH | February 14th, 2009

Why are we using govt funds to finance a $ 100K vehicle? Isn’t that what competent VC companies are for? Now if this was consumer car like the Indian Nano for $ 2 – 2.5 K, then it begins to make sense. Is the energy dept having a slow day or are they just plain stupid?

Beammeupscotty | February 16th, 2009