Tesla Announces Early Repayment of Loans, Annual Report Correction
In what could prove to be a symbolic moment for the strength and potential of the electric vehicle industry, Tesla Motors, on its company blog, announced its intention to re-pay its Department of Energy Advanced Technology Vehicle Manufacturing loan five years ahead of schedule, with the last payment being on 2017, instead of 2022 the original deadline for payback of the loans.
In the heated political climate surrounding government-subsidized green energy initiatives, the company was quick to point out the that ATVM loans were initiated and approved under the Bush administration, and were completely separate from the federal bailout of General Motors and Chrysler, as well as being the smallest of the ATVM loans granted, the others being Ford at $5.9 billion, Nissan at $1.4 billion, and Fisker at $529 million. Tesla’s loan was for $465 million.
In the blog post, Tesla VP of Business Development, Diarmuid O’Connell, said the company expected to show a modest profit in the first quarter of 2013, excluding non-cash option and warrant-related expenses.
The company’s upcoming models were briefly mentioned in the post, including the Model X crossover, and the third-generation model, described as a high-volume, low-price model, sometimes referred to as the “Blue Star.” During its development, the Model S was coined the “White Star” by many automotive media outlets.
However, being a publicly-traded company, Tesla is under the scrutiny of investors and regulators, and announced that its annual report would be delayed due to errors in its filing, according to Bloomberg. Some unpaid capital expenditures from 2011 and 2012 will be re-classified as operating activities in the revised report.
Source: Bloomberg, Tesla