• Jan 23rd 2010 at 3:59PM
  • 37
Tesla Model S – Click above for high-res image gallery

While only half of the AutoblogGreen readership said they'd invest in Tesla Motors when (if?) the company gets its IPO organized, technically, most of you technically already have. As Wired put it, "Are you a U.S. citizen? If so, congratulations - you're officially an investor in Tesla Motors." The reason for this is that earlier this week, Tesla announced that U.S. Department of Energy secretary Steven Chu signed the $465 million loan arrangement from June. Tesla CEO Elon Musk said that:
We are honored that the US government selected Tesla to be among the first companies to participate in this visionary program. This loan will allow us to further accelerate the production of affordable, fuel-efficient electric vehicles.
So, how does it feel?

  • tesla-model-s-large-4
  • tesla-model-s-large-2
  • tesla-model-s-large-1
  • tesla-model-s-large-3
  • tesla-model-s-large-5
  • tesla-model-s-large-6

[Source: Tesla Motors]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 5 Years Ago

      It's hard to envision that to happen....but then again, humans went from first time liftoff in a wooden plane to hauling 200 people in jets in almost no time.

      Maybe Tesla will never deliver, but the transition to EVs is a chance we shouldn't keep pushing back because "the technology is not ready" like we did for the last 20 years.
      • 5 Years Ago
      This is a 25 billion dollar program guess who got 95% of it.Tesla has the only electric car I want to buy and is only asking for a 465 million loan interest loan.
      • 5 Years Ago
      I feel great about this LOAN. Anything that helps rush (quality) EV's to market from companies with a proven track record of quality and innovation.

      I know what the money is supposed to be used for but I hope it helps grease investors wheels as well and gets production finished on the "S" faster. The "S" is going to be their first chance to turn a profit and the "blue wave" (iirc) will be a mainstream success I'm sure.

      I'd buy stock in Tesla if they went public.
        • 7 Months Ago
        I'm waiting for them to go public so that i can buy stock in them. I'm actually sort of saving my money for it.
      • 5 Years Ago
      Hopefully this means they have a factory location locked in now. Can't wait to see the production Model S, esp the 300 mile version.
      • 5 Years Ago
      Why should a billionaire get taxpayer's money?

      The whole CO2 AGW thing is falling apart. Pachauri, the head of the IPCC, is channelling taxpayers and charity funds to his private organisation TERI based on claims of glaciers retreat fully manufactured by WWF. Since WWII, temperatures have gone down from the forties to the seventies, then up for 20 years, then down again since 1998. See the link with constant increase in CO2 emissions? I thought not. Could that be because there is no such link? Current temperatures are not unprecendented by any means. We have just had climategate. But that's nothing. Look at the quality of the temperature record from GISS. Down from 6.000 stations some time ago to 1.500 now. Minus three quarters. The ones that were dropped were high altitude / high latitude / in the country side. The ones kept low altitudes / low latitudes / built up areas and airports. And the missing former are "approximated" based on the remaining latter.

      Tesla managed to bring to market an exciting electric sports car for which a demand exists, without plundering tax payers hard earned Dollars, hats off, it's a historical success for which I have nothing but admiration. But now, clamouring for taxpayers money, Musk should be ashamed.

      This madness has got to stop.
      • 5 Years Ago
      Strictly for accuracy's sake, there are many resident aliens who pay US takes who are now "invested" in Tesla too, so it's not a mere matter of US citizenship.
        • 7 Months Ago
        Taxes, not "takes". Lame, non-editable AOL/BlogSmith comment system.
      • 5 Years Ago
      I though investing was when you purchased stock in the company? Then you hold it sell it at a profit or loss. A loan will not allow you to share in the profits of the company, it will only provide interest on the loan. When Tesla makes their first loan payment we loaners will receive our first interest income from Tesla. I look forward to receiving interest income from Tesla.
        • 7 Months Ago
        Loaning money to companies that have a sane business model and actually produce a product is an investment. Sounds like a decent deal to me if they can build or reuse an existing factory and lower the price on their cars a little.

        If they could produce these 'batteries' in car size, it would revolutionize everything (no gas stops for years). But no company would be willing to take this much risk when their current model makes them enough money. https://share.sandia.gov/8700/projects/content.php?cid=58

        It's kind of like how the US government 'invested' in early computers and Arpanet since there would be no investor that would have waited around 30-40 years for modern computers and Internet companies to form.
        • 5 Years Ago
        In this sense it is sort of an investment for the government because they are hoping that Tesla creates american jobs for the next couple of decades at least and provides the government with income tax revenues. Its more of an investment in jobs than in the company. That's why they consider it an investment.
        • 5 Years Ago
        To go one step further, it is an investment in the tax dollars that will be created as a result of the economic activity stemming out of the initial factory jobs this loan will enable. They get loans + interest, plus tax revenues that expand far beyond just the plant employees themselves.
      • 5 Years Ago
      Well it feels a lot better than TARP or the GM Bailout. I'm feeling good ; )
      • 5 Years Ago
      Polo, as I said in my comment, if a real auto company, making more than 50,000 cars a year grows out of this investment, it will be worth it. Tesla is a boutique auto maker with around 1000 cars built and sold so far. If they default on the mortgage, they will have bilked you and me out of the better part of $465,000,000. And as I said in my post, the risk is worth the possible gain. If Tesla can build an affordable, sub $35,000 BEV with 120+ AER in large numbers the loan will have been worth it to get us off foreign oil. I personally think that in the 5 to10 year time frame that EREV's will be the only way to avoid a cripplingly expensive BEV MSRP, but it is in all of our interests to explore different options.
      And Musk said in February of 2008 that Tesla would go public by the end of the year, then in May of 2008 he said that it would go public by the end of 2009. He tried to go public in 2008 and couldn't make it work. I don't know why, but it wasn't because VC investors were blocking the doors, slowing down his sales.
      • 5 Years Ago

      If no one tries making EVs then they will never happen. If you remember correctly, the govt created the pan-American railroad network, then the freeway network.
      Or how much longer do you want to keep burning oil?

      Fisker isn't Al Gore's project, you're using his name everytime you hear of a cleantech project, that's ridiculous. Do I mention Joe The Plumber everytime I hear some right-wing story?

      Now one question:

      Where were you when your Republican idols doled out hundreds of billions of incentives to real-estate speculators? Where were you when they filled their energy sector buddies' pockets? Talk of double standard.
      • 5 Years Ago
      Meh. I don't have much faith in Tesla delivering an inexpensive electric car. They can barely deliver a really expensive electric car. :-/
        • 7 Months Ago
        So you're calling a start-up company delivering 1,000 cars, that cost over $100,000, in a year someone who is barely delivering? I would like to see someone else do better.

        As with most technology the "rich" pay for it first, with Tesla it's a $100,000+ sports car. From there it slowly trickles down to those with less and less money. There are currently just a hair under 1,600 Model S reservations, for example, and I believe that number will dramatically increase once test-drive units are in Tesla stores.

        To continue with my cost examples, the first cell phone was ~$4000 before inflation adjustment! Now you can get one for practically free. The Model S is less than half the Roadster's cost and Tesla is planning on getting a "family car" in ~2016, if the pricing halves again that will be >$28,000.

        Tesla is also a big reason the Volt (and probably the Leaf and Focus EV) even came into the minds of GM, Nissan and Ford. If it wasn't for Tesla I think we wouldn't be seeing a battery-powered vehicle from a major manufacturer for at least another decade, if at all.
      • 5 Years Ago
      I wish Barack Obama has put more money towards greentech than for bailing out bank CEOs and paying for the Healthcare of the lazy and incapable.

      How far could $1 Trillion take us? We could:

      -Build a supergrid
      -Supply 50% of America's energy demand with renewables
    • Load More Comments
    Share This Photo X