Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Tesla gets long-awaited government loan
San Francisco Business Times ^ | June 23, 2009 | Lindsay Riddell

Posted on 09/14/2011 8:08:22 PM PDT by artichokegrower

Tesla Motors, makers of the first electric car that can travel more than 200 miles between charges, got its $465 million loan guarantee from the government Tuesday. Tesla has been banking on the guarantee for more than two years. The guarantee essentially insures the San Carlos-based company can borrow the money from financial partners to build a factory to produce for Tesla’s next-generation sedan, the Model S. The sedan will sell for around $45,000, that’s with a $7,500 tax credit from the government, and is about half the price of its first production vehicle, the high-end Tesla Roadster.

Tesla had struggled to raise money this year as banks essentially stopped lending amid the credit crisis and recession. Tesla Chairman Elon Musk essentially bankrolled the company with his own money through the beginning of the year. Tesla then signed a deal with Daimler AG, which took a 10 percent stake in the company in May. The Department of Energy had indicated that strategic partnerships with credit-worthy companies would be a major advantage as it evaluated to which companies it would award loan guarantees.

Tesla looked at building a factory in San Jose, which aggressively courted the company. But according to terms of the loan guarantee had to find a brownfield site – essentially a former factory it could retrofit — if it wanted to use the government’s guarantee. When it was unable to find an appropriate site in San Jose, it abandoned plans there and focused instead on the LA-area.

Tesla’s award was part of $8 billion the government said today it would award for advanced vehicle technologies. Ford Motor Co. (NYSE: F) will get $5.9 billion to transform factories across the country to make more fuel efficient vehicles. Nissan North America got $1.6 billion to retool its Smyrna, Tenn. Factory. Tesla will use part of the money it raises to manufacture drivetrains for its cars, Daimler and possibly other companies.

By supporting key technologies and sound business plans, we can jumpstart the production of fuel efficient vehicles in America,” said Energy Secretary Steven Chu, in a statement. “These investments will come back to our country many times over – by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions.”

The Advanced Vehicle Technology Program is part of the $789 billion economic stimulus package the federal government passed in January.

But Tesla had applied for the government prior to the passage of the stimulus package through a program under the Bush administration that was never funded.


TOPICS: Culture/Society
KEYWORDS: solyndra; tesla
Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last
Sounds like deja vu all over again. Tesla is a stones throw from Solyndra. Less than a mile down the street. This was written in 2009 at this time Tesla produces no cars that are for sale. Say good bye to another $500 million taxpayers of America.
1 posted on 09/14/2011 8:08:25 PM PDT by artichokegrower
[ Post Reply | Private Reply | View Replies]

To: artichokegrower

The current business model nowadays seems to be producing a product that is otherwise economically infeasible without a government subsidy.


2 posted on 09/14/2011 8:17:44 PM PDT by SpaceBar
[ Post Reply | Private Reply | To 1 | View Replies]

To: artichokegrower

this from wiki: “Production for the retail market is expected to begin in mid 2012, with a base price of US$57,400.[3] The base model will have a range of 160 miles (260 km) when fully charged, and a 0 to 60 mph (0 to 97 km/h) acceleration of 5.6 seconds.”

That’s actually getting close to an actual useful car. get the price down to 40k without a rebate or subsidy and the range up to 250miles...and then they have something useful.


3 posted on 09/14/2011 8:17:54 PM PDT by mamelukesabre
[ Post Reply | Private Reply | To 1 | View Replies]

To: artichokegrower
Yeah, the 21st century snake oil scheme: if you wanna make money and you don't have a conscience, draw up some cockamamie 'green' program on the back of a cocktail napkin, get a gummint loan for it, default on it without producing one thimbleful of tangible results, then let the lawyers help put the average taxpayer on the hook for the bill while you live large.

"But know this, that in the last days perilous times will come: for men will be lovers of themselves, lovers of money, boasters, proud, blasphemers, disobedient to parents, unthankful, unholy, unloving, unforgiving, slanderers, without self-control, brutal, despisers of good, traitors, headstrong, haughty, lovers of pleasure rather than lovers of God, having a form of godliness but denying its power. And from such people turn away, for his name is Obama."

4 posted on 09/14/2011 8:19:54 PM PDT by Viking2002 (RELEASE THE KRAKEN!!!!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

.


5 posted on 09/14/2011 8:21:58 PM PDT by twistedwrench
[ Post Reply | Private Reply | To 1 | View Replies]

To: artichokegrower
Building a factory in San Jose....one of the highest cost areas in the country...?

Insanity rules....Obamanomics in action.

6 posted on 09/14/2011 8:22:03 PM PDT by spokeshave (Obamas approval ratings are so low, Kenyans are accusing him of being born in the USA.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: artichokegrower

I live in one of the most populated areas of the country, and spend a few hours each working day driving all over my state and I have never seen a Tesla car. So Tesla and Solyndra together is $1 billion dollars in payoffs to cronies.


7 posted on 09/14/2011 8:23:23 PM PDT by gusty
[ Post Reply | Private Reply | To 1 | View Replies]

To: gusty

Isn’t Al Gore a big stockholder in Tesla? So I’ve heard.


8 posted on 09/14/2011 8:24:50 PM PDT by varina davis (Life is not a dress rehearsal)
[ Post Reply | Private Reply | To 7 | View Replies]

To: spokeshave

This is the one key element of the story that you have to laugh about. Who starts a business today in California? On labor costs alone...I’d be in Georgia or Alabama. This is an attempt to simply spice up a government loan and have a certain smell to it (like California jobs). It’s another born failure in the waiting. They paid some money to the campaign of 2008, and promised more for 2012....to get this loan, which is really a dumping of government capital down a pit.


9 posted on 09/14/2011 8:28:28 PM PDT by pepsionice
[ Post Reply | Private Reply | To 6 | View Replies]

To: gusty

The tesla car cost over $100,000 dollars and only has two seats.

Who the hell can afford it other then government.


10 posted on 09/14/2011 8:28:28 PM PDT by edcoil (The will to win is important, but the will to prepare is vital. -- Joe Paterno)
[ Post Reply | Private Reply | To 7 | View Replies]

To: varina davis
Isn’t Al Gore a big stockholder in Tesla? So I’ve heard.

I'll bet he was given the shares in exchange for "consulting".

11 posted on 09/14/2011 8:29:35 PM PDT by poindexter
[ Post Reply | Private Reply | To 8 | View Replies]

To: mamelukesabre

You specified two points. Good ones. Neither were met.


12 posted on 09/14/2011 8:29:35 PM PDT by allmost
[ Post Reply | Private Reply | To 3 | View Replies]

To: edcoil

See here for a photo: I am sure the average american paying for this can afford it - far from the henry ford business model.

http://www.worldtopcars.org/category/tesla/


13 posted on 09/14/2011 8:30:13 PM PDT by edcoil (The will to win is important, but the will to prepare is vital. -- Joe Paterno)
[ Post Reply | Private Reply | To 10 | View Replies]

To: artichokegrower

Kiss of Death


14 posted on 09/14/2011 8:30:42 PM PDT by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: artichokegrower

Look for another year of high executive salaries and big bonuses at Tesla, followed by bankruptcy. Sort of like “The Producers”, except with a whole lot of our money.


15 posted on 09/14/2011 8:31:13 PM PDT by poindexter
[ Post Reply | Private Reply | To 1 | View Replies]

To: allmost

yes, but everytime one of these flaky companies dreams up a new miracle car, they actually get a little closer to pulling it off. I think in another 20 years someone will actually do it.


16 posted on 09/14/2011 8:36:18 PM PDT by mamelukesabre
[ Post Reply | Private Reply | To 12 | View Replies]

To: artichokegrower

I’ve done similar math for the VOLT...and the Tesla will pay for itself in 400k miles, assuming no battery changes...at the 45k price. Word is it will really be 50k. So, if you drive a car 20k miles a year, in two decades, you’ll be cash ahead....excluding the higher cost to insure and tag a 50k vehicle. Only government would throw half a billion at this turkey - plus a subsidy on every sale.


17 posted on 09/14/2011 8:41:12 PM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: pepsionice
>Who starts a business today in California? On labor costs alone...I’d be in Georgia or Alabama.

You do manufacturing where the labor is cheaper, but you design where the pool of talent is amazing.

The Bay area of California is simply rich with brilliant engineers and programmers.

18 posted on 09/14/2011 8:41:27 PM PDT by krb (Obama is a miserable failure.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: artichokegrower

Can I ask a stupid question?

Why is the government giving loan guarantees to private businesses in the first place?

Even if you worship at the altar of Al Gore and all things green, how is it legal to give loans to companies in “green” businesses, but other businesses have to go to a bank or private investors for financing? When did we get into the green socialism business in a big way????

Can I also ask if Tesla Motors has presented financial statements and budgets and such, to see if they have any hope of repaying this loan?? Is that a stupid question in light of what happened with Solyndra????? Are all the t’s crossed and i’s dotted on the contract???


19 posted on 09/14/2011 8:46:21 PM PDT by Dilbert San Diego
[ Post Reply | Private Reply | To 1 | View Replies]

To: artichokegrower

So where are these amazing cars with a 200-mile (???) range? In California, you can’t go anywhere in less than 200 miles, unless you live in liblooneyland (SF or LA).


20 posted on 09/14/2011 8:53:12 PM PDT by hsalaw
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson