Tesla Motors Pays Off $465M Gov’t Loan Early

TSLA becomes first U.S. auto company to repay DoE loans

   

Things keep on comin’ up Tesla (TSLA).

The electric-car manufacturer announced Wednesday evening that it had become the first U.S. based automaker to pay back a Department of Energy loan. Its final transfer of $451.8 million, covering the remainder of its $465 million loan as well as interest, paid off the debt well ahead of the final scheduled installment in 2022.

Tesla Motors was able to repay the loan thanks to $1 billion raised from a secondary stock offering of 2.7 million shares. Founder and CEO Elon Musk announced at the time that he would buy $45 million in shares from the public offering, as well as an additional $55 million worth in a private placement.

TSLA stock was flat in after-hours trading, though shares have improved by nearly 160% since the start of 2013 thanks to the success of its Model S and the May announcement of the company’s first-ever quarterly profit.

The Department of Energy currently has 32 other projects with outstanding loans.

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Article printed from InvestorPlace Media, http://investorplace.com/2013/05/tesla-motors-pays-off-465m-govt-loan-early/.

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