Tesla Pays off $451.8 million Federal Loan

[Midtowner]

The loan program has been a major controversy, with Republicans pointing to the failure of solar panel maker Solyndra and likely bankruptcy filing by plug-in hybrid car maker Fisker to make the case that the government embarked on risky "green energy" loans. Former Massachusetts Gov. Mitt Romney cited Tesla, along with Fisker, in bashing President Obama over the loans during the presidential campaign last year.

http://www.usatoday.com/story/money/cars/2013/05/22/tesla-loan-energy-department/2351945/

[diverdog]

http://www.usatoday.com/story/money/cars/2013/05/22/tesla-loan-energy-department/2351945/

2% loan losses are a tad high but not unsustainable.

[pphilfran]

A couple of things...

They were smart going after the high end market...that helps absorb some of the cost of the drivetrain....it is also a damn good car....

They had their first quarterly profit...11 million on 562 million in sales...

Where did they get 451 million to pay off the loan?

They sold off 68 million of Cali clean air tax credits to other companies last quarter....that amounts to 12% of revenue...5000 cars sold in the quarter so $13,000 per car sold...damn, that sounds like a ****pot full...wonder is they had some credits saved from earlier quarterly sales?

So we basically subsidize each car by 20k....7500 tax credit and 13k (if accurate) in emission credit sales...
http://www.usatoday.com/story/money/cars/2013/05/08/tesla-first-profit/2145065/

[Soonerjeepman]

but but they paid it off...so it's a SUCCESS!!!! :sleeping:

[pphilfran]

but but they paid it off...so it's a SUCCESS!!!! :sleeping:
They are over the hump...

[SicEmBaylor]

I honestly did not think Tesla was going to make it. I just didn't see enough of a market for high-end electric vehicles.

[badger]

Whoa... Back to the Future-style Delorean wing doors!

WINNAH!

[Midtowner]

Looks like a spaceship inside.

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRb5OVHLd9S7vuXAtZkh-S2FYfnHgZl6ZLjRHL_5cAr7tP8ZCbrlg

[rock on sooner]

An electric car 0-60 in 4.2 seconds and 400+ miles on a charge, only
thing to not like is the price....

[pphilfran]

Whoa... Back to the Future-style Delorean wing doors!

WINNAH!

That is the Tesla X...comes out next year...a SUV/Minivan mix...

Mercedes had a gull wing door in 1952...300sl

[champions77]

A couple of things...

They were smart going after the high end market...that helps absorb some of the cost of the drivetrain....it is also a damn good car....

They had their first quarterly profit...11 million on 562 million in sales...

Where did they get 451 million to pay off the loan?

They sold off 68 million of Cali clean air tax credits to other companies last quarter....that amounts to 12% of revenue...5000 cars sold in the quarter so $13,000 per car sold...damn, that sounds like a ****pot full...wonder is they had some credits saved from earlier quarterly sales?

So we basically subsidize each car by 20k....7500 tax credit and 13k (if accurate) in emission credit sales...
http://www.usatoday.com/story/money/cars/2013/05/08/tesla-first-profit/2145065/

It smells the same way that GM supposedly paid off all of their government loans.....only to find out that they used government money from another source to pay off a government loan. I'll never forget the interim CEO Ed Whitaker walking throught the GM plant, bragging on the "accomplishment", and lying through his teeth. We find out later that just another ruse to trick the public into thinking what a great deal that was to loan billions to GM.

Seeing what we know today about the Obama regime, we see a familiar pattern over the years, deception, lies, coverups and a whole lot of "I don't remember"...I'm sure all orchestrated by the "Man". I wonder how many more will refuse to fall on their sword for this phony and come forward?

[pphilfran]

I still want to know where they got the money to pay off the loan...they have only had revenue since 2008...total revenue since that time of about a billion...how did they find 450 million?

[olevetonahill]

I still want to know where they got the money to pay off the loan...they have only had revenue since 2008...total revenue since that time of about a billion...how did they find 450 million?

They took it of the Coffee Kitty.

[pphilfran]

An electric car 0-60 in 4.2 seconds and 400+ miles on a charge, only
thing to not like is the price....
It is more than competitive in it's market segment....

Audi A7 - $60k-80k
MB CLS - $70k-90k
Tesla S- $87k prior to tax credits

[pphilfran]

Their 2010 IPO brought in 226 million (Daimler and Toyota are two of the biggest investors)

[sappstuf]

It is more than competitive in it's market segment....

Audi A7 - $60k-80k
MB CLS - $70k-90k
Tesla S- $87k prior to tax credits

Meh, you can drive those other cars in freezing temps without losing half your mileage...

[SCOUT]

Meh, you can drive those other cars in freezing temps without losing half your mileage...

Half of the mileage is still a win for Tesla.

[sappstuf]

Half of the mileage is still a win for Tesla.

Conjuring up $450 million out of thin air was a bigger win...

This is a car for the ultra rich. They would either buy it or not without the government subsidy. But they are happy to take some cash away from the middle class while buying a status symbol....

Sucker.

[cleller]

The fact that Tesla is out of Silicon Valley, and took a completely different approach than Detroit seems to be a grand slam. Probably the fact that they are not built in Detroit is a big bonus, too. They've built a car people want, that works. Right now its the Apple of the auto industry.

Add in CEO Elon Musk, a huge trendsetter, and business developer who could out-cool Steve Jobs....Could be big.

[TheUnnamedSooner]

I'm sure they still owe $450 million. They just don't owe fed government that money. Doubt they had that much cash on hand to just pay off a loan

[BermudaSooner]

2% loan losses are a tad high but not unsustainable.

Let's see what the final talley is--clearly it will be much higher than 2% as most of the loans are still outstanding. It would be interesting to see how much capital a bank would have to hold against this $34 billion loan portfolio--that would give a bigger sense of the risk.

One loan at roughly 1% of the portfolio paying back doesn't say much. My beef with these loans is not necessarily that the administration shouldn't have such a program--supporting companies developing new technologies can be a good thing for government to do (I particularly like it much better than just government agency research funding)---but the politicized way these loans are handed out and the complete lack of due diligence on the government's part before releasing these substantial sums--that is the ridiculous part.

Want to get the government investing in our country by supporting new technologies--great--do a little due diligence first and don't hand loans out to your crony buddies.

[pphilfran]

Let's see what the final talley is--clearly it will be much higher than 2% as most of the loans are still outstanding. It would be interesting to see how much capital a bank would have to hold against this $34 billion loan portfolio--that would give a bigger sense of the risk.

One loan at roughly 1% of the portfolio paying back doesn't say much. My beef with these loans is not necessarily that the administration shouldn't have such a program--supporting companies developing new technologies can be a good thing for government to do (I particularly like it much better than just government agency research funding)---but the politicized way these loans are handed out and the complete lack of due diligence on the government's part before releasing these substantial sums--that is the ridiculous part.

Want to get the government investing in our country by supporting new technologies--great--do a little due diligence first and don't hand loans out to your crony buddies.

I know that I am in the minority but is dislike the loans...I would much rather give credits in specific industries...

The government is not a Venture Capitalist...that is not their expertise...They may think Company S is the best thing going so Uncle Sam gives them a cheap loan and cash infusion....Company T is in the same industry and actually has a better product and business plan but they are only in the early stages of company formation and miss out on the low cost loan...they are now at a a disadvantage to Company S...