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Tesla Model S  (Source: Tesla Motors)
Let the money flow...

The federal government seems to be quite happy with dishing out money for environmentally friendly ventures, and there are plenty of companies that are willing to take the funds and put them to good use. One such company is Tesla Motors.

Tesla Motors is probably most notable for its sexy all-electric Roadster. The $100,000+ sports car, which is based on the Lotus Elise chassis, has a driving range of 244 miles – one Tesla Roadster, however, was able to travel 313 miles on a single charge -- and can zip to 60 mph in less than four seconds. However, Tesla is looking to take its electric car-building prowess to a somewhat more mainstream audience with its four-door Model S electric sedan.

This is where the federal government steps in to work its magic. According to the Detroit News, Tesla Motors today closed on a deal to secure $465 million in low-cost loans from the Energy Department. The funds will be used to build manufacturing plants in California for the Model S and its powertrain.

The company was originally approved for the loan back in June of 2009. The $465 million will come from the Advanced Technology Vehicle Manufacturing Program which is providing a total of $25 billion to automakers that develop new fuel efficient vehicles. Other notable names to get in on the loans include Nissan ($1.6 billion) and Ford ($5.9 billion).

"This is an investment in our clean energy future that will create jobs and reduce our dependence on foreign oil," said Energy Secretary Steven Chu.

"It will help build a customer base and begin laying the foundation for American leadership in the growing electric vehicles industry. This is part of a sustained effort to develop and commercialize technologies that will be broadly deployed throughout the American auto industry."

As previously reported by DailyTech, the Model S will have a driving range of up to 300 miles and can dash to 60 mph in 5.5 seconds. The fetching sedan weighs in at a portly 4,000 pounds (1,200 pounds of which comes from its lithium-ion battery pack). If all goes according to plan, the base Model S will cost around $50,000 after a government-backed $7,500 tax credit is taken into consideration. For comparison, the Chevrolet Volt is expected to cost in the “low 30s” after the $7,500 tax credit is applied. At that price point, GM still contends that it can make a profit.

The Model S is scheduled to go into production in 2012 and yearly output is pegged at 20,000 units per year.



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RE: clue me in on this...
By lelias2k on 1/21/2010 8:21:50 PM , Rating: 2
Well, they are receiving loans, which means they eventually have to repay them (i.e. the government is not giving this money away). The loans have the objective of generating future jobs, which is what the economy needs. Whether or not this is going to come to fruition we'll have to wait and see.

And the reason the government is doing this is because if it doesn't then these companies will definitely not be able to create new jobs, and the economy will definitely go sour. And it's not only the auto industry, but anything else that is being bailed out.

Everybody thinks it's so easy to solve the economy, but reality is that this country is buried in debt, internal and foreign, and it will take a long time for us to recover. Thinking that anything can be easily solved is what put us here to begin with... we have a long, hard road ahead of us, so buckle up and try to enjoy the ride.


RE: clue me in on this...
By SandmanWN on 1/21/2010 8:39:12 PM , Rating: 3
quote:
Well, they are receiving loans, which means they eventually have to repay them (i.e. the government is not giving this money away). The loans have the objective of generating future jobs, which is what the economy needs. Whether or not this is going to come to fruition we'll have to wait and see.

You can't be this thick.

Oh well, its worth a shot. Here goes...
I got this nice shiny new bridge in a pristine location and I think you are just the man for this deal!


RE: clue me in on this...
By lelias2k on 1/21/2010 8:43:23 PM , Rating: 3
Well, that's the principle. If you're going to be cynical about this then I believe you should stay away from discussing politics at all, because that's not even that bad...

I mean, pick your battle: education, health, war, etc... etc... etc...


RE: clue me in on this...
By SandmanWN on 1/21/2010 8:59:12 PM , Rating: 2
Come on man, I'm being serious here. Its a great location. I promise! I just need a little bit of cash up front and we are golden!!! There is no lose in this deal. Hey listen, It will create jobs, the people will love that!

quote:
I mean, pick your battle: education, health, war, etc... etc... etc...

I don't recall picking these battles. Pretty obvious these battles were chosen for the people, not by the people. Get your mind right.


RE: clue me in on this...
By lelias2k on 1/21/2010 9:13:39 PM , Rating: 2
quote:
Pretty obvious these battles were chosen for the people, not by the people.


Sorry, I just realized you were joking all along...


RE: clue me in on this...
By SandmanWN on 1/21/2010 9:22:51 PM , Rating: 1
Seriously man, the divers are ready to go, the re-bar is at the yard, the concrete is ready for mixing, and the unions are fully down; provided you understand its a sliding scale job. They get 40 hours +20 overtime every week whether they work or not. The sliding part is you can go up, but never down.

And no, this jokes on you.


RE: clue me in on this...
By quiksilvr on 1/21/2010 11:55:27 PM , Rating: 2
Why do you say things that you know will hurt me?


RE: clue me in on this...
By lelias2k on 1/22/2010 4:02:23 AM , Rating: 2
Seriously, stop, I can't stop laughing...


"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer














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