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

by Kyle Woodley | May 22, 2013 6:30 pm

Things keep on comin’ up Tesla (TSLA[1]).

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[2]. 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.

More on Tesla

Endnotes:
  1. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  2. secondary stock offering of 2.7 million shares: http://investorplace.com/2013/05/ceo-elon-musk-has-100m-worth-of-faith-in-tesla/
  3. Tesla’s ‘Tsunami of Hurt’ Lands on Shorts: http://investorplace.com/2013/05/my-tesla-motors-victory-lap/
  4. Should Investors Hit the Brakes on Tesla?: http://investorplace.com/2013/05/should-investors-hit-the-brakes-on-tesla/

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