Tesla Motors Pays Off DOE Loan 9 Years Early

Tesla Motors Pays Off DOE Loan 9 Years Early
<a href="https://pixabay.com/users/Blomst/">Blomst</a> / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) has been promising to do it, and now it has—nine years early. The company said its Department of Energy loan has been paid off as of today, using the cash it raised last week through its stock and bonds offering. That’s according to Reuters reporter Ben Klayman.

Tesla Motors Pays Off DOE Loan 9 Years Early

Tesla Motors Pays Loan In Full

The EV automaker said today that it wired $451.8 million to the Department of Energy to pay back the entire loan with interest. The company originally borrowed $465 million.

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Tesla Motors Inc (NASDAQ:TSLA) co-founder and CEO Elon Musk thanked the DOE and Congress for the Advanced Technology Vehicle Manufacturing program, under which the company’s efforts were funded. In a statement, he also thanked “the American taxpayer from whom these funds originate.”

The DOE Shows Off Tesla Motors’ Accomplishment

Although the alternative energy loan program was begun under President George W. Bush, Republicans have criticized the Obama administration’s support of green energy companies. Several Republicans have lumped Tesla Motors Inc (NASDAQ:TSLA) in with other companies like Fisker Automotive, which is near bankruptcy, and A123 Systems and Solyndra, which have both already filed for bankruptcy.

Tesla Motors Inc (NASDAQ:TSLA) is the first company which received money under the DOE loan program to pay it back. Larger automakers which also received funds, including Ford Motor Company (NYSE:F) are taking their time paying off their loans, although the amounts they received were much larger.

In all, the DOE has made loans to 33 different companies for work on alternative energy products. Tesla’s loan was the smallest one that was awarded. Ford Motor Company (NYSE:F) received almost $6 billion under the program.

U.S. Energy Secretary Ernest Moniz provided a statement saying, “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.”

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