Tesla Announces Loan Repayment, But Delays Model X Crossover EV
March 11, 2013 4:37 PM
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Payoff of government startup funding is five years ahead of schedule
If the half-billion dollar boondoggle that was Solyndra is an example of the worst case scenario of the U.S. government playing venture capitalist, electric vehicle (EV) maker Tesla Motors Inc. (TSLA) may be the best case. The automaker this week
-- and got -- permission to repay its $465M USD in government loans five years ahead of schedule.
The old agreement would have the Palo Alto-based company repaying its low-interest debt by late 2022, the new deal will have repayment finished by mid-2017. Despite the
The New York Times
, Tesla's flagship Model S remains a hot seller.
most reviews positive
in the bag, Tesla is
once more profitable
. The mid-range luxury priced Model S is the key to that. Tesla spokeswoman Shanna Hendriks says that the automaker will
ship a record 20,000
Model S vehicles this year.
But if there was a cloud to be found in the silver lining, it's with Tesla’s crossover EV,
the Model X
. Tesla had hoped to begin production of the vehicle this year, but difficulties have forced to it
those plans until late 2014. That means deliveries -- previously planned for 2014 -- will likely be pushed back till 2015.
A Tesla Model X prototype [Source:
Valentin Flauraud / Bloomberg
Another potential worry turned out to be a non-concern. Tesla had delayed its annual 10K filing, raising fears that it was having some sort of undisclosed financial problems. Instead, explains Jefferies LLC, in a note to investors, "According to the company, the filing was delayed due to a last-minute change in the auditors' policies for classifying cash flows, and was not due to any errors on [Tesla's] part."
In other words, don't fret about the 10K.
The LA Times
This article is over a month old, voting and posting comments is disabled
3/12/2013 2:57:27 PM
I still think GM screwed up by focusing on a hybrid for the masses rather than a high-end hybrid in the Cadillac brand. The Volt has too much pricing pressure, and GM acknowledged that they had to scale back their technical ambitions to get the Volt to the target price point.
Tesla's success just highlights the fact that GM is run by bean counters.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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