Tesla wants in on the $25 billion loan program

[graham]

Business Feed Article | Business | guardian.co.uk

Tesla Motors Inc, the Silicon Valley electric car start-up forced into a Detroit-style restructuring, expects to secure a share of the $25 billion pool of taxpayer-backed loans recently approved by the U.S. government to benefit the auto industry.
"We'll put it to probably the best use of any other company," Elon Musk, Tesla's founder and now chief executive told Reuters.
"We'll spend it very effectively for the taxpayers, and I don't think the taxpayers will get better value from any other car company," he said.
Any share of the $25 billion loan program Tesla secures would be in addition to another $200 million in still-pending loans from the U.S. Department of Energy.

I thought this was a separate topic from the layoff thread, but feel free to move it if it belongs elsewhere.

 

[doug]

A related thread is here: http://www.teslamotorsclub.com/off-topic/1558-cars-candidates-loans-bailouts.html.

 

[doug]

In general agree with the Musk quotes above. I think Tesla is in a position to do much more with less. However, I have no idea how that $25 billion loan program was written, and how much, if any, Tesla would be entitled to under it.

 

[Sgee]

I wonder what would happen if Tesla got a small share in this? Would they be able to move forward with their Model S program or return back to their deadline for late 2010? Could someone ask some of the answers on the owners forum because im not fortunate enough to have the money to be part of it.

 

[graham]

It is a good question. Does this payout happen any faster than the other loans that they plan to get as soon as the environmental impact study finishes? It is likely that it would make little difference in the overall timeline because it would not be available to them until they have a plant, just like the others.

 

[Sgee]

From what ive read from the articles they are talking about 6 to 18 months before the whole thing is finalized. So, I think im answering my own question by saying no it wont effect the date that the Model S comes out.

 

[DDB]

From what ive read from the articles they are talking about 6 to 18 months before the whole thing is finalized. So, I think im answering my own question by saying no it wont effect the date that the Model S comes out.

I think it would have a HUGE impact--even if the cash is not distributed for a year and a half. Money could be shifted (even deposits) relying on the cash you know Uncle Sam will pony up. Unbelieveable.

I love EVs. I admire Tesla. I HATE they would even think of asking for a bailout. What country is this, anyway. Welcome to the United States of Socialism. For folks that don't like discussing politics, I'd suggest a different thread. OUTRAGEOUS.

 

[graham]

I think it would have a HUGE impact--even if the cash is not distributed for a year and a half. Money could be shifted (even deposits) relying on the cash you know Uncle Sam will pony up.

I don't think that is true. I agree it will have a huge impact on Tesla's overall viability, and whether the Model S actually comes out. But I don't think the guarantee of part of the bailout loan sometime in the future will give them any more money today than their existing guarantee of the DOE loan that they already have.

They currently have guarantees of lots of money etc. coming in the future. From the Federal government, the State of California and the City of San Jose. Even with all of that on the horizon, they still having to lay people off right now. Unless the bailout money can get to them before the DOE loan, I don't think the Model S will be able to come out any faster. DOT crash testing takes time, and promises of lots of money some day in the future won't do that much to speed it up. Admittedly though, if they could get the money in their pockets in another month or two they might still hit the 2010 mark.