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Print 68 comment(s) - last by jack daniels e.. on Mar 2 at 2:25 PM

Musk only needs half the time given to pay loan

Electric vehicle maker Tesla received a loan from the U.S. Department of Energy to the tune of $465 million. The automaker has until the end of the decade pay off the loan, but CEO Elon Musk believes that Tesla will be able to pay off the entire loan in half the time.

The loan was granted to Tesla under the Advanced Technology Vehicles Manufacturing loan program and allowed the automaker to retool an automotive manufacturing plant in California. Tesla uses that plant to produce the Model S electric vehicle, and has recently stated that it will be able to produce 20,000 of the sedans during 2013.


President Obama and Elon Musk

Despite seeing a significant increase in revenue, the automaker lost nearly $90 million during the last quarter and lost approximately $400 million during all of 2012. This news sent Tesla shares downward last week.
 
Musk also got personally involved in a dustup with the New York Times over what he saw as an unfair and dishonest review of the Model S. According to Musk, the bad publicity cost the company $100 million.

Source: Technology Review



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RE: Great photo
By Reclaimer77 on 2/28/2013 6:01:50 PM , Rating: 2
I actually agree with you. However this isn't a debate about Government regulations, as much as it is about the Government playing investment capitalist with a side of Cronyism, with redistributed wealth.

Actually is really simple. Mint is in favor of Tesla, so he's trying to make an argument that the loans are good for all of us. Which is absurd.

If Mint and everyone with his mindset had sent Musk a check for $25 or so bucks, we wouldn't be having this discussion. But the problem with our society is that people rather wield Government power like a blunt instrument. They prefer the Government to take money from others and spend it to the things they care about. Except around half the people in this country of voting age pay no Federal income taxes, so why should they care about Government spending or tax policy?

I'm guessing Mint falls under this bracket too.


RE: Great photo
By Mint on 2/28/2013 6:47:22 PM , Rating: 2
quote:
If Mint and everyone with his mindset had sent Musk a check for $25 or so bucks, we wouldn't be having this discussion
Wrong. That was already tried, and he only raised ~$200M. It's called an IPO.

The gov't loan gave him the rest of what was needed to get moving. Only then could Tesla convince people to invest the next billion.
quote:
Mint is in favor of Tesla, so he's trying to make an argument that the loans are good for all of us
I am in favor of the public to vote for whatever spending they think is worthwhile, just like you (and I, incidentally) are in favor of investments in nuclear power, which the free market has done an awful job of investing in by itself. I don't hear you asking for Obama to stop those loan guarantees, which are finally spurring at least a little progress.


RE: Great photo
By Reclaimer77 on 2/28/2013 6:54:42 PM , Rating: 2
quote:
Wrong. That was already tried, and he only raised ~$200M. It's called an IPO.


You're actually making my point for me. Hello!!!

So if Tesla wasn't important enough for you (the figurative you) to invest in, don't turn around and then claim the Government needs to pick up the slack! That is not the purpose of this Government. It's why we're in the mess we're in today.

As far as you comparing nuclear power generation, a public service/good, to an electric car for the rich....WOW!


RE: Great photo
By Mint on 2/28/2013 7:34:43 PM , Rating: 2
quote:
So if Tesla wasn't important enough for you (the figurative you) to invest in, don't turn around and then claim the Government needs to pick up the slack!
I'm not turning around from anywhere. It is important enough, which is why it's now worth $4B. However, it was stuck in a catch-22: people don't invest if they're not sure Musk can pull it off, and Musk can't show them that he can pull it off without people investing.
quote:
It's why we're in the mess we're in today.
LOL I'd love to hear the bunk logic you used to conclude that...
quote:
As far as you comparing nuclear power generation, a public service/good, to an electric car for the rich....WOW!
This is the myopia I was referring to before. I drove a BMW as a grad student because somebody else bought it 6 years before me and I got it at 1/5th the MSRP. 10 years from now a family will be driving a Model S built today and they'll be saving >$2k/yr on gas.

When Panasonic started making big screen plasma TVs, they cost $8000. Now they cost <$800. An industry has to start somewhere.


RE: Great photo
By Pirks on 2/28/2013 8:42:58 PM , Rating: 2
quote:
industry has to start somewhere
Reclaimer is too dumb to understand such simple things


RE: Great photo
By Pirks on 2/28/2013 8:38:44 PM , Rating: 2
quote:
As far as you comparing nuclear power generation, a public service/good, to an electric car for the rich
Cars were for the rich a while ago, same with electric cars now. All smart people understand that, but rednecks don't need to apply.


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