Tesla Charged About Possible Government Loan

by | Feb 13, 2009

Tesla Motors may be able to ramp up production of its electric cars if a $450 million government loan comes through as expected, the company’s chief executive officer indicated recently.

According to the San Jose Mercury News, in a newsletter to customers, CEO and chairman Elon Musk wrote,  “I am excited to report that the Department of Energy informed Tesla last week that they expect to disburse funds … within four or five months.”

San Carlos, Calif.-based Tesla did not say its loan application had been approved. The San Jose Mercury News reported an Energy Department spokeswoman said the agency “has made no final decisions for specific applications for the auto-loan program.”

Tesla has requested $350 million toward retrofitting a factory to craft its Model S electric sedan and $100 million for making batteries.

Tesla has more than 1,000 customers on a waiting list for the $109,000 Tesla Roadster, a two-seat electric vehicle. Although only 200 roadsters have been produced thus far, Musk said it’s “highly likely” Tesla will become profitable by midyear, according to the article.

In addition to the Chevrolet Volt, Nissan intends to make an electric car for the U.S. market.

Stay Informed

Get E+E Leader Articles delivered via Newsletter right to your inbox!

Share This