Tesla CEO vows to pay off US loan early

February 27, 2013 by Matthew Daly

The chief executive of electric car maker Tesla Motors says his company plans to pay back an Energy Department loan in half the time required by the U.S. government.

CEO Elon Musk said Tesla plans to pay off the $465 million federal loan in five years, rather than 10 years. Musk made the comment Tuesday at a summit on energy innovation, where he appeared on stage with and defended the Obama administration's clean energy program.

Noting the firestorm of criticism aimed at the Energy Department after the bankruptcy of solar company Solyndra, which received a $528 million federal loan, Musk said it was only fair that the administration wins praise for success stories such as Tesla. He said the company is on course to earn a small profit this quarter.

In his appearance at the ARPA-E summit, Musk also said the Palo Alto, California, company lost as much as $100 million in as a result of a public spat with The New York Times following a negative review of its all-electric Model S car.

Musk accused the newspaper of faking results of an East Coast road test and traded shots with the paper and its reporter for more than a week on Twitter and in blogs. The Times said the test was an honest account of what happened on the drive.

Tesla received an loan in 2010 under a program similar to the one that benefited Solyndra. The first payment was due late last year, with final payment in 2022. A company spokeswoman said Tesla hopes to pay off the loan by 2017.

The company made its first payment of nearly $13 million in December. A second payment is due in March.

Explore further: Tesla to launch electric sedan in US on June 22

0 shares

Related Stories

Recommended for you

Asteroids, hydrogen make great recipe for life on Mars

March 26, 2019

A new study reveals asteroid impacts on ancient Mars could have produced key ingredients for life if the Martian atmosphere was rich in hydrogen. An early hydrogen-rich atmosphere on Mars could also explain how the planet ...

Cool Earth theory sheds more light on diamonds

March 26, 2019

A QUT geologist has published a new theory on the thermal evolution of Earth billions of years ago that explains why diamonds have formed as precious gemstones rather than just lumps of common graphite.

New cellulose-based material represents three sensors in one

March 26, 2019

Cellulose soaked in a carefully designed polymer mixture acts as a sensor to measure pressure, temperature and humidity at the same time. The measurements are completely independent of each other. The ability to measure pressure, ...

Physicists discover new class of pentaquarks

March 26, 2019

Tomasz Skwarnicki, professor of physics in the College of Arts and Sciences at Syracuse University, has uncovered new information about a class of particles called pentaquarks. His findings could lead to a new understanding ...

Study finds people who feed birds impact conservation

March 26, 2019

People in many parts of the world feed birds in their backyards, often due to a desire to help wildlife or to connect with nature. In the United States alone, over 57 million households in the feed backyard birds, spending ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.