Tesla, an electric carmaker in San Carlos, Calif., also applied for money under the 2005 legislation. But it has since applied to a different loan guarantee program and is hoping to receive about $450 million under the program created by the Sec. 136 of the $25 billion Advanced Technology Vehicle Manufacturing Program (ATVM), which Congress created as part of the Energy Independence and Security Act of 2007. Congress set aside $7.5 billion last fall for the program, which aims to help car and auto parts manufacturers outfit their factories for producing energy-efficient cars.
The terms of a ATVM loan guarantee is more favorable than the one created in 2005, said Rachel Konrad, a Tesla spokeswoman. The DOE hasn't announced any loan guarantee approvals from this program, but has said it could do so within weeks, Konrad noted.
"It allows you to amortize certain engineering costs, among other factors. It's a less expensive loan – if you look at all the terms," said Konrad, who declined to disclose how much savings Tesla would get.
Tesla is seeking $350 million to build a factory for its second electric car model called Model S, as well as another $100 million for powertrain manufacturing, Konrad said.
