Tesla To Start Repaying US Loans…With US Loans
MAY 13 2012 BY STAFF
After announcing that not only would the Model S arrive on time, but early, Tesla added that it would be drawing down the remaining balance of its $465 million ATVM loan, to begin making repayments at the end of this year. Hmmm.
The builder of the Roadster just recently reported its latest quarterly earnings report (which was actually a loss), and Tesla disclosed it only had 104.5 million left in cash on their balance sheet. This balance, coupled with the extensive costs of ramping up production on a new model this quarter, makes it is no secret that Tesla is currently severely underfunded, and this money will go a long way in aiding the California startup to get their new offering to market.
Chief Financial Officer Deepak Ahuja said that all of the remaining funs will be used by the end of September to an effort to get the Model S out to customers. Shortly thereafter, and before the end of the year, payments to the loan program will begin.
With Tesla completing the project the ATVM loan was intended (365 million for production engineering and assembly of the Model S, and 100 million for powertrain manufacturing plant), and if the company begins their repayments on schedule, this would be a rare win for the Obama administration, after some notable failures of late, like Solyndra LLC.
“We are pleased that Tesla continues to make progress and look forward to working with them as clean, electric vehicles play an important role in our energy future,” said Damien La Vera, who is an Energy Department spokesman.
The loan is repayable over a ten year time frame, at rates between 0.9 and 3.4 percent.