U.S. electric vehicle maker Tesla Motors has paid back its 2010 loan awarded by the Department of Energy. Following payments made in 2012 and earlier in 2013, the May 22 payment of $451.8 million repays the full loan amount with interest.
According to a DOE statement, this payment makes Tesla nine years early in paying off its loan.
In 2010, Tesla was awarded a milestone-based loan, requiring matching private capital obtained via public offering, by the DOE as part of the Advanced Technology Vehicle Manufacturing program.
The loan payment was made May 22 using a portion of the nearly $1 billion in funds raised in recent concurrent offerings of common stock and convertible senior notes.
Elon Musk, Tesla’s CEO and cofounder, purchased $100 million of common equity, the least secure portion of the offering. “I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the ATVM program, and particularly the American taxpayer from whom these funds originate,” said Musk. “I hope we did you proud.”
Secretary of Energy Ernest Moniz said in a statement that Tesla’s loan and others have cost less than anticipated and succeeded in their goal of advancing clean energy technology.
“When you’re talking about cutting-edge clean energy technologies, not every investment will succeed – but today’s repayment is the latest indication that the Energy Department’s portfolio of more than 30 loans is delivering big results for the American economy while costing far less than anticipated,” Moniz said in a statement. “The Department first offered loans to Tesla and other auto manufacturers in June 2009, when car companies couldn’t get other financing and many people questioned whether the industry would survive. Today, Tesla employs more than 3,000 American workers and is living proof of the power of American innovation.”