Tesla to Repay $465M U.S. Loans Five Years Ahead of Schedule

Originally, it had until 2022 to pay off the Energy Department loans

   

Tesla to Repay $465M U.S. Loans Five Years Ahead of Schedule

tesla model s 630 300x236 Tesla to Repay $465M U.S. Loans Five Years Ahead of ScheduleElectric car-maker Tesla Motors (NASDAQ:TSLA) has negotiated a new plan with the U.S. government to repay federal loans half a decade earlier than previously planned.

The U.S. Energy Department provided the company with $465 million in loans to develop the technology used in its high-end, battery-powered luxury cars. Under the original loan terms, the company had until 2022 to pay the government back, Bloomberg noted.

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That time has now been cut to just five years. Tesla expects to complete its loan repayments in 2017.

Tesla expects to produce 20,000 of its Model S vehicles — each priced at about $100,000 – this year. It hopes to turn a profit during its current fiscal quarter.

In November, Motor Trend named the Model S its 2013 Car of the Year.

Last month, Tesla founder and CEO Elon Musk vented his displeasure with a negative New York Times review of the Model S via Twitter, challenging the reporter’s account of his test drive.

Shares of Tesla Motors climbed more than 1% in Friday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/03/tesla-to-repay-465m-u-s-loans-five-years-ahead-of-schedule/.

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