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Tesla repays federal loan nine years early

Original post made on May 22, 2013

Tesla Motors today wired the U.S. Department of Energy nearly a half a billion dollars, paying off the entire loan it was awarded by the U.S. Department of Energy in 2010 with interest and nine years ahead of schedule.

Read the full story here Web Link posted Wednesday, May 22, 2013, 4:40 PM

Comments (9)

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Posted by resident
a resident of Old Palo Alto
on May 22, 2013 at 6:02 pm

What kind of lousy management is this? With interest rates at record lows, they should be refinancing, not repaying their loans. Be more like Apple and take money from the Feds, not give it back. No wonder the right wingers don't trust these greenie companies.


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Posted by musical
a resident of Palo Verde
on May 22, 2013 at 7:56 pm

I think more money goes from Apple to the Feds than from the Feds to Apple.


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Posted by Josh
a resident of Another Palo Alto neighborhood
on May 22, 2013 at 9:14 pm

Does anybody care what Sarah Palin has to say? Her 15 minutes were up a long time ago. Good for Tesla!


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Posted by Fred
a resident of Barron Park
on May 22, 2013 at 9:47 pm

"What kind of lousy management is this? With interest rates at record lows, they should be refinancing, not repaying their loans."

While it hardly seems worth it to rebut this kind of vitriol, the facts are 1) they did refinance, issuing $500 million in new debt along with stock and 2) as part of their loan, the DOE had the right to buy low-priced stock (3 million shares at <$10/share vs. $87 price today), which was extinguished when the loan was repaid early. The interest on the newly issued debt is <2% (very low), with an ability to convert to common stock at a significant premium to current (very high) prices.

So time will tell if this is a wise move or not, but from mgmt's point of view, the DOE loan was getting very expensive because of the stock purchase right (warrant) and the commercial loan was very cheap.

(Full disclosure - I don't own the stock, bonds, work for the company, or own the product)


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Posted by Last Hurrah
a resident of Old Palo Alto
on May 23, 2013 at 7:43 am

Hooray for Tesla! Good going Elon Musk! Hooray for America!


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Posted by Mel
a resident of Mountain View
on May 23, 2013 at 10:46 am

Great job Tesla! It's about time someone step up and repay their debts. I guess Mitt and Sarah can eat some humble pie. BTW, I am a Republican too.


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Posted by Joe
a resident of Another Palo Alto neighborhood
on May 28, 2013 at 11:39 am

The taxpayers are still on the hook to help Tesla pay its bills--maybe we should all understand how much you are helping Tesla--
---
Web Link

The public is still on the hook for Tesla, and will be for the foreseeable future.

"
The public is still on the hook for Tesla, and will be for the foreseeable future."
First, there's the $7500 taxback bonus that every buyer gets and every taxpayer pays. Then there are generous state subsidies ($2500 in California, $4000 in Illinois—the bluer the state, the more the taxpayers get gouged), all paid to people forking out $63K (plus taxes) for the base version, to roughly $100K for the really quick one.
---


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Posted by who cares
a resident of Palo Alto Orchards
on May 28, 2013 at 9:18 pm

It wasn't a loan (as Tesla PR staff would like you to beleive), it was a bailout provided by the taxpaying citzens of the U.S. The U.S. Gov't rewarded Tesla and others with taxpayer bailout money for bad management practices and questionable financial practices and decisions God Bless America! Maybe Tesla should just pay the money back and keep their mouth shut.


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Posted by TSLA
a resident of Downtown North
on May 28, 2013 at 10:17 pm

Tesla stock price flew past $100 today, up 400% in the past year. Not just the lefties are believing in this company now.


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