Tesla Motors Inc (TSLA) CEO vs. Chrysler Group CEO

0
Tesla Motors Inc (TSLA) CEO vs. Chrysler Group CEO
Blomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk repaid the $451.8 million loan to the U.S. government nine years ahead of schedule. Tesla has faced a lot of criticism over the loan it received from the Department of Energy.  Now, Elon Musk-led electric car maker is the only U.S. car maker to have fully repaid the government loan under the Advanced Technology Vehicle Manufacturing program of DOE.  Tesla Motors Inc. (NASDAQ:TSLA) recently raised about $1 billion in a stock and bond offering.

Play Quizzes 4

Tesla Motors Inc (TSLA) CEO vs. Chrysler Group CEO

The government will make approximately $12 million from its $465 million loan to the electric car maker, according to Forbes. Elon Musk expressed his gratefulness to the government for its help in getting the Model S in the market. He thanked the Congress, DOE, their staff and the American taxpayer.

This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

Tesla Irritated Chrysler

But Elon Musk’s statement on Twitter, which says that Tesla Motors Inc. (NASDAQ:TSLA) is the only American car maker to have fully repaid the government loan, didn’t go down well with Chrysler Group LLC chief Sergio Marchionne. Chrysler immediately issued its own statement, saying that Tesla shouldn’t forget that Chrysler had fully repaid its loan. Chrysler chief took a veiled shot at Elon Musk with “Question: short memory or short-circuit?”

Sergio Marchionne clarified that Musk’s information is incorrect. It’s a well-known fact that Chrysler Group LLC fully repaid its loan along with interests to the U.S. and Canadian governments six years early.

But Sergio Marchionne hid an important part of his story. Of course, Chrysler repaid the $5.9 billion loan it received as a part of a larger bailout of the company by the taxpayer. But Chrysler Group LLC was forced to repay because interest rates on those loans were between 7 percent and 14 percent, compared to Tesla Motors Inc (NASDAQ:TSLA)’s 1-3 percent.

And yes, Chrysler Group LLC hadn’t repaid all of another $12.4 billion bailout money. For that, Treasury Department had received stock in the company, which it sold back to Chrysler in 2011. Treasury suffered a loss of $1.3 billion on that loan.

Tesla Motors Inc (NASDAQ:TSLA) shares were up 2.01 percent to $88.99 at 12:46 PM EDT.

Updated on

No posts to display