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
RE: Reclaimer is looking like a !!@#ing moron now
3/13/2013 7:52:54 AM
So he complained about the loans from the Feds. They have given out enough money where they (by chance) got one right.
RC is still largely correct about government loans to large corporations and still correct about this one.
Musk is a very, very wealthy man with more than enough money to have done this himself, yet he did not want to risk
money. So he invested a little and got government loans for most of the rest. Let's see the average small business owner do that nowdays.
As for the rest of your post, grow up, you are not going to agree with everybody all the time and name calling makes you look like a juvenile.
RE: Reclaimer is looking like a !!@#ing moron now
3/25/2013 11:40:55 PM
If you believe Elon Musk didn't want to risk his money, you obviously know nothing about this topic. He ran out of cash funding this investment/startup.
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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