Tesla Nabs $465M Government Loan To Build Model S

[Krootie]

Slashdot News Story | Tesla Nabs $465M Government Loan To Build Model S

SignalFreq writes "Tesla Motors, based in San Carlos, California, was approved yesterday for $465M in loans from the Department of Energy's Advanced Technology Vehicles Manufacturing program. Tesla plans to use $365M of the money to finance a manufacturing facility for the Model S (review, Letterman video) and $100M for a powertrain manufacturing plant in the SF Bay Area. '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. Tesla expects the Model S to ship in late 2011 and the base cost to be $57,400 ($49,900 after a federal tax credit). Ford received $5.9B and Nissan received $1.6B under the same program."

[Dunerunner]

I think the Model S is a geat looking car, if they could just get a 600 mile range at freeway speeds out of it!!

Right now, it's a little too expensive for the everyday driver and still limited to around town or near town driving.

I hope the grant from US helps them improve in those areas.

[jwight]

A lot of that money is going to a battery production facility; good news since Tesla is apparently supplying the battery pack for the smart ED. Your tax dollars at work!

[VinceLA]

That's quite a bit of loan there...

My gripe is I till see Tesla as a rich person's play toy. At the end of the day it seems like you have to have some dough in order "to be green". And taxpayers are paying for that so that some bloke can have his toy. Then again, one might argue that the technology will trickle down to the average joe. When might that be?

If Tesla invests the loan in converting all public school buses, commercial trucks, semis into some form of electric/hybrid/solar power driven etc, then I think there's where our tax dollars are really at work.

[jwight]

We have to start somewhere; low production volume = higher costs. Somewhere there's a crossover point where the volume increases and costs start to go down. Until then the government (us) is investing for the long term to help kickstart the move to non-fossil fuel power sources. Good investment IMHO.

[jonnysan]

Originally Posted by jwight

We have to start somewhere; low production volume = higher costs. Somewhere there's a crossover point where the volume increases and costs start to go down. Until then the government (us) is investing for the long term to help kickstart the move to non-fossil fuel power sources. Good investment IMHO.

I recall Tesla's announcement to build the S model for $49,900 came some time before the Fed announcement to help out buyers with the $7,500 tax credit. Tesla then changed their tune claiming that the sticker on the car is STILL $49,900 and includes the tax credit.

No Fair! Foul Ball!

We do indeed have to start someplace and they seem to be closest to main stream with technology...both driveline and battery.

[jwight]

Can't speak to the S model as I haven't followed it; if they did juggle the price after the rebate announcement that's a foul IMHO.

[John_H]

It is only loan guarantees provided by the US as I understand it. There are no tax dollars invested yet and hopefully never. The current Tesla offerings are only expensive playthings because they haven't had the infrastructure to produce more vehicles for lower margin. In order to go from fledgling leading-edge manufacturing to larger scale, it takes either time or money.

[24-42]

Originally Posted by John_H

It is only loan guarantees provided by the US as I understand it. There are no tax dollars invested yet and hopefully never. The current Tesla offerings are only expensive playthings because they haven't had the infrastructure to produce more vehicles for lower margin. In order to go from fledgling leading-edge manufacturing to larger scale, it takes either time or money.

And usually a combination of both.

Donald LaFavor

[craven3557]

That's all good but I 'll stick with my Mercedes uh I mean my Smart.:}