Tesla Gets Loan Approval from DOE

23 June, 2009 11:50:00

Font size:

Tesla Motors has received approval for about $465 million in low-interest loans from the US Department of Energy to accelerate the production of affordable, fuel-efficient electric vehicles.

Tesla will use $365 million for production engineering and assembly of the Model S, an all-electric family sedan that carries seven people and travels up to 300 miles per charge.

The Model S has an anticipated base price of $49,900 after a $7,500 US federal tax credit. It has lifetime ownership costs equivalent to a conventional car with a sticker price of $35,000, thanks to the lower cost of electricity vs. gasoline and a relative lack of service and maintenance. Tesla expects to start Model S production in late 2011 in a state-of-the-art assembly plant employing about 1,000 workers.

Tesla will use $100 million for a powertrain manufacturing plant. The facility will supply all-electric powertrain solutions to other automakers, greatly accelerating the availability of mass-market EVs. The new facility will employ about 650 people.

Tesla is in the final stages of negotiation for facilities in California.

The loans are part of the Advanced Technology Vehicle Manufacturing Program, which provides incentives to new and established automakers to build more fuel-efficient vehicles.

Created in 2007 and appropriated in September 2008, the $25 billion ATVM aims to reduce America’s dangerous dependence on foreign oil and create “green collar” jobs. The program is entirely unrelated to the stimulus package or the so-called “bailout” funds that General Motors and Chrysler have received.

Subscribe to the RSS feed for more information on green cars, green car news & green car technologies.