Tesla Motors today wired the U.S. Department of Energy nearly a half a billion dollars, paying off the entire loan it was awarded by the U.S. Department of Energy in 2010 with interest and nine years ahead of schedule.

The Palo Alto electric-car company made sure to note that with the $451.8 million repayment it became the “only American car company to have fully repaid the government,” according to a company press release.

“I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the ATVM (Advanced Technology Vehicle Manufacturing) program, and particularly the American taxpayer from whom these funds originate,” Tesla CEO and co-founder Elon Musk said. “I hope we did you proud.”

The company made the payment using the nearly $1 billion it raised last week selling common stock and convertible senior notes. Musk bought $100 million in common equity stocks in the company.

Tesla has been in national headlines frequently this year. It announced the first quarter of 2013 as the first profitable quarter in its 10-year history, earning $11 million in profit from $562 million in revenue.

In January, Tesla’s Model S sedan won Motor Trend’s 2013 car-of-the-year award and this month racked up a 99 out of 100 in Consumer Reports’ review, the highest rating earned in the history of the magazine.

As a result its stock prices have experienced a meteoric rise. A year ago today its value was $30.74; today it closed at $87.24.

The news comes despite the dire predictions of one or two public figures. During his unsuccessful 2012 presidential campaign, former Massachusetts Governor Mitt Romney called Tesla a “loser,” lumping it together with the likes of Solyndra and Fisker Automotive — failed and failing green companies also funded by the Department of Energy.

In an April 5 Facebook post, former Alaska Governor Sarah Palin bashed Tesla as part of the “the latest manifestation of the administration’s crony capitalism as their green-energy buddies benefit from this atrocious waste of taxpayer money.”

“Obama-subsidized Tesla that turns into a ‘brick’ when the battery completely discharges and then costs $40,000 to repair,” she wrote.

Musk issued a dry response on Twitter.

“Sarah Palin calls Tesla a loser. Am Deeply wounded … btw Model S warranty does cover ‘bricking.'”

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9 Comments

  1. What kind of lousy management is this? With interest rates at record lows, they should be refinancing, not repaying their loans. Be more like Apple and take money from the Feds, not give it back. No wonder the right wingers don’t trust these greenie companies.

  4. “What kind of lousy management is this? With interest rates at record lows, they should be refinancing, not repaying their loans.”

    While it hardly seems worth it to rebut this kind of vitriol, the facts are 1) they did refinance, issuing $500 million in new debt along with stock and 2) as part of their loan, the DOE had the right to buy low-priced stock (3 million shares at <$10/share vs. $87 price today), which was extinguished when the loan was repaid early. The interest on the newly issued debt is <2% (very low), with an ability to convert to common stock at a significant premium to current (very high) prices.

    So time will tell if this is a wise move or not, but from mgmt’s point of view, the DOE loan was getting very expensive because of the stock purchase right (warrant) and the commercial loan was very cheap.

    (Full disclosure – I don’t own the stock, bonds, work for the company, or own the product)

  6. Great job Tesla! It’s about time someone step up and repay their debts. I guess Mitt and Sarah can eat some humble pie. BTW, I am a Republican too.

  7. The taxpayers are still on the hook to help Tesla pay its bills–maybe we should all understand how much you are helping Tesla–
    —
    http://www.cato.org/publications/commentary/tesla-would-stop-selling-cars-wed-all-save-some-money?utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer&utm_content=buffere8a58

    The public is still on the hook for Tesla, and will be for the foreseeable future.

    “
    The public is still on the hook for Tesla, and will be for the foreseeable future.”
    First, there’s the $7500 taxback bonus that every buyer gets and every taxpayer pays. Then there are generous state subsidies ($2500 in California, $4000 in Illinois—the bluer the state, the more the taxpayers get gouged), all paid to people forking out $63K (plus taxes) for the base version, to roughly $100K for the really quick one.
    —

  8. It wasn’t a loan (as Tesla PR staff would like you to beleive), it was a bailout provided by the taxpaying citzens of the U.S. The U.S. Gov’t rewarded Tesla and others with taxpayer bailout money for bad management practices and questionable financial practices and decisions God Bless America! Maybe Tesla should just pay the money back and keep their mouth shut.

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