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Tesla pays government loan nine years in advance


We talk a lot about electric cars on this blog, and no other car maker is more well known in this field than Tesla Motors, makers of exclusively – and rather high end – electric vehicles.

They’ve been in the news in the U.S. for a bunch of reasons, but today we’re reporting that they have managed to repay the remaining portion of the loan that was granted to it by the US Department of Energy back in 2010.

The electric vehicle manufacturer transferred US$451.8 million this week in order to clear its debt with the government – plus interest.

The initial loan was awarded to Tesla under the US government’s Advanced Technology Vehicle Manufacturing program three years ago, and by paying off the entire debt this week they’re nine years ahead of schedule.

Tesla CEO Elon Musk also confirmed that the final loan payment was made by using a part of the almost US$1 billion raised in last week’s offering of common stock and convertible senior bonds.

Musk made a statement in which he thanked the Department of Energy, the members of Congress and especially the American taxpayer from whom the funds initially originated.

The Tesla shares finished up 6.4 percent following the announcement; the price of Tesla shares have increased 168 percent since March 1st, which was a reflection of the company’s first ever quarterly profit as well as many positive reviews of its new Model S luxury sports model.

On the other part of the loan, the US Energy secretary Ernest Moniz said that the repayment of the Tesla loan was proof that the ATVM program has indeed stimulated the industry.

We have to keep in mind the fact that Mitt Romney, US presidential candidate called Tesla a ‘loser’ company during his campaigning, so it’s very interesting and refreshing to see this so-called ‘loser’ already repaying back their government loan.

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