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Press Release:

Tesla Gets Loan Approval from US Department of Energy

Electric Vehicle Manufacturer Will Use Loans to Build an Assembly Plant for Model S Sedan and Another Facility to Manufacture Electric Powertrains

SAN CARLOS, Calif.--(BUSINESS WIRE)--Tesla Motors has received approval for about $465 million in low-interest loans from the US Department of Energy to accelerate the production of affordable, fuel-efficient electric vehicles.

Tesla will use $365 million for production engineering and assembly of the Model S, an all-electric family sedan that carries seven people and travels up to 300 miles per charge.

The Model S has an anticipated base price of $49,900 after a $7,500 US federal tax credit. It has lifetime ownership costs equivalent to a conventional car with a sticker price of $35,000, thanks to the lower cost of electricity vs. gasoline and a relative lack of service and maintenance. Tesla expects to start Model S production in late 2011 in a state-of-the-art assembly plant employing about 1,000 workers.

Tesla will use $100 million for a powertrain manufacturing plant. The facility will supply all-electric powertrain solutions to other automakers, greatly accelerating the availability of mass-market EVs. The new facility will employ about 650 people.

Tesla is in the final stages of negotiation for facilities in California.

The loans are part of the Advanced Technology Vehicle Manufacturing Program, which provides incentives to new and established automakers to build more fuel-efficient vehicles. Created in 2007 and appropriated in September 2008, the $25 billion ATVM aims to reduce America’s dangerous dependence on foreign oil and create “green collar” jobs. The program is entirely unrelated to the stimulus package or the so-called “bailout” funds that General Motors and Chrysler have received.

“Tesla will use the ATVM loan precisely the way that Congress intended -- as the capital needed to build sustainable transport,” said Tesla CEO and Product Architect Elon Musk. “We are honored that the US government selected Tesla to be among the first companies to participate in this progressive program.”

Building on Proven Technology

The Model S sedan features exceptional performance, styling and utility, with unrivaled cargo and passenger space. Its floor-mounted powertrain is the culmination of a half-decade of engineering in the heart of California’s Silicon Valley, where Tesla developed the Roadster.

The highly acclaimed Roadster is the first production battery electric vehicle to travel more than 200 miles per charge and the first US- and EU-certified Lithium-Ion battery electric vehicle. With an estimated range of 244 miles per charge and zero tailpipe emissions, it’s the first production vehicle to offer supercar performance with a clean conscience.

Tesla has never applied for federal funds for the Roadster, an American sports car that consumes no gasoline whatsoever. Tesla expects the Roadster business unit to be profitable in the third quarter. Privately held Tesla will finance sales and marketing for the Model S through private capital.

Tesla has delivered more than 500 Roadsters to customers. Later this month, Tesla will begin delivering its second-generation Roadster and Roadster Sport, an even higher-performance vehicle.

Teslas do not require routine oil changes or exhaust system work. They have far fewer moving (and breakable) parts than internal combustion engine vehicles. They qualify for federal and state tax credits, rebates, sales tax exemptions, free parking, commuter-lane passes and other perks. The Model S costs roughly $5 to drive 230 miles – a bargain even if gasoline were less than $1 per gallon.

The Model S, which carries its charger onboard, can be recharged from any conventional outlet. Three battery pack choices will offer a range of 160, 230 or 300 miles per charge.

Tesla is taking reservations online and at its two showrooms in California. Tesla will expand its network of showrooms this summer with stores in New York, Chicago, Seattle and Miami. Tesla will open its London showroom June 25, followed by Munich and Monaco. Additional stores will be opened in Washington DC and Toronto.

About Tesla

San Carlos, Calif.-based Tesla Motors designs and manufactures electric vehicles with exceptional design, performance and efficiency, while conforming to all North American and European safety, environmental and durability standards. The Roadster, which has a 0-to-60 mph acceleration of 3.9 seconds and a base price of $101,500 after a federal tax credit, is the only highway-capable production EV for sale in North America and Europe. Tesla expects to begin Model S production in late 2011. Tesla is already taking orders for the sedan, which has an anticipated base price of $49,900 after the tax credit.
 

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What a complete sham.
 

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It is a sham, and that goes without saying, but it's also probably going to push the schedule on EVs forward a couple years, which may be worth it.
 

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Nearly a Million $ for each car they've delivered! Wow.
 

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Nearly a Million $ for each car they've delivered! Wow.
...not bad for a remarketer - that'll probably cover most of their top executive pay for the next year or two...
 

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Wow. With the cost of the low interest loan and the $7500/car credit I wonder how much of each of these we're going to be subsidizing by the time this is all done.
 

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It's just getting retarded how freely our government is printing money.

USA will soon be the United State of China
 

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It's just getting retarded how freely our government is printing money.

USA will soon be the United State of China
And it is not just the fact they are printing and borrowing, it is the capricious and arbitray manner in which it is being squandered.
 

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So spending money on the development of smarter more economical transportation is a sham? WTF. I hope you had more of a problem with the billions thrown into a fake war in Iraq? What I see is that Americans seem to do more complaining than doing anything else. GM built an awesome electric car in the 90s. However, they got scared (because they may have to use their brains) and literally destroyed all evidence of the program out of that in their "wisdom" created Hummer. If they had committed to some losses in the short run they would be the top manufacture by now (the long run) with the most advanced fleet of electric vehicles in the world. Instead...

I use to be employed in the racing industry from 2000-06. I quit because it just seemed like such a waste... In 07 I got together with some forward thinking Americans to start the manufacture of an electric vehicle powertrain. However, even with the illusion of plenty of cash out there back then no one was interested in investing. Currently we have shelved the motor and controller design and now sell battery electrics manufactured in... where else? China. They are way ahead of us in this area and we need to do something about it instead of sitting on our fat asses complaining. I think that it is fantastic that tesla is getting capital. It is a good investment. Substantially better than wasting it on war toys

Just my 2cents.... with all this said. I still want John's 2000 m-sport elise:D
 

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So spending money on the development of smarter more economical transportation is a sham?
...not at all - i wager nearly everyone here enthusiastically supports the development of new and innovative transportation technologies...

...the problem is that tesla does no such thing; they're a silicon valley VC enterprise managed with all the shameless charlatanry of any given late-nineties dot-com ponzi scheme...that they've actually brought five hundred cars to market is a remarkable testament to the few people in their organisation and customer base who so desperately strive to see the idea succeed, and i absolutely hope they can reign tesla's momentum in a productive direction, but that's an awful lot of dead weight steer with precious little suspension carrying its load...

...wow, a roadster analogy, and totally unplanned at that!.. ;)
 

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So spending money on the development of smarter more economical transportation is a sham? WTF. I hope you had more of a problem with the billions thrown into a fake war in Iraq?

So $1M per car sounds OK to you. Alright then. Yeah, what sham? :rolleyes: Throwing Iraq into your argument doesn't make it any more logical.
 

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Well, thanks M I feel better now.

I guess that explains the lack of resolution to the problems they were having with the 2 speed gearbox. We were baffled how they could not see or try to solve the problem using the motor control system. I guess for them it was difficult to control torque output with their controller. Funny, we always had a gut feeling there were too many "salesmen" and not enough engineers.

Well, anyway at least some sort of program will get started in this country. Also, the money going to Ford and Tesla are Loans. We (taxpayers) did quite well with the loans made to the banks.

IMHO The bailouts are a waste. GM and Chrysler need to burn and let the ashes feed a new healthy industry. Whatever that may be.
 

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So $1M per car sounds OK to you.
Yes, at this stage it is called R&D. Funding needs to come from somewhere to build facilities to mass produce the vehicles. Technically at this point. that figure or more accurately, ratio should actually go up. When production ensues the number will go down. Are you lost on this, or are u just being inflammatory?
 

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It's a collateral-free loan granted without any personal guarantees from the owners, so it's free money. If they fail to successfully bring the Model S to market, this money is flushed down the toilet and Tesla's executives walk away. Tesla has no assets to seize, and most of the intellectual property that goes into their vehicles belongs to someone else.
 
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