Tesla pays off its $451 milllion federal loan

Chris Woodyard, USA TODAY4:42 p.m. EDT May 22, 2013

Electric car maker Tesla Motors, in a move that is sure to buoy the spirits of both the company and the Obama administration, announced that it has paid off its entire federal loan.

It is paying off $451.8 million of the remaining loan approved by the Energy Department in 2009 -- with interest.

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 in question why the government made 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.

Tesla's move had been anticipated since last week when it took advantage of a soaring stock price to issue more stock shares and make a bond offering. The stock price rose after the company reported that it had earned a profit in the first quarter, the first since its founding.

Tesla makes the all-electric Model S sedan, which has received critical acclaim -- including a 99 out of 100 score from Consumer Reports in its testing and Motor Trend Car of the Year -- but remains out of the price reach of most car buyers. Prices start around $70,000. It is due to start production of an equally expensive gull-winged SUV, the Model X, later this year.

Tesla, in announcing the payback, said it is the first automaker to fully repay its loan.

. "I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the (advanced vehicle loan) program, and particularly the American taxpayer from whom these funds originate," said Tesla Elon Musk in a statement. "I hope we did you proud."

http://www.usatoday.com/story/money/...tment/2351945/