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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Great photo
By Mint on 2/28/2013 6:28:59 PM , Rating: 2
You're right, what would Elon Musk do without the government loan? He would only have billions to fall back on. - See more at:
Musk was almost broke in terms of tangible assets, and put everything he had into Tesla. He's a billionaire from his paper wealth, i.e. his stake in SpaceX and Tesla.
Once equilibrium is reached, expansion will start to occur as money is invested in those areas providing return
No it won't. There is no shortage of such money today with the handouts. We actually have more annual investment in corporate equipment today than we ever have, but that's still not enough investment to use all the money that the debt-free are saving.

There is no limit of available capital today. There's tens of trillions of dollars seeking merely 2% average return to no avail. So tell me, how do you get more business opportunity from an economy that is less capable of purchasing its products?

RE: Great photo
By Reclaimer77 on 2/28/2013 6:35:27 PM , Rating: 2
Musk was almost broke in terms of tangible assets, and put everything he had into Tesla.

Gee I can't imagine why he would have a hard time finding private investments. Clearly the free market was at fault there. High risk, virtually no payoff. Brilliant!

Hey didn't our economy collapse in 08' partly because of bad lending practices to people who couldn't pay loans back? Hmmmm, perhaps there's some correlation here...

"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Yahoo Hacked - Change Your Passwords and Security Info ASAP!
September 23, 2016, 5:45 AM
A is for Apples
September 23, 2016, 5:32 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki