Tesla repays federal loan nearly 10 years early

[Mr. Big Dog 10,747]

Odd that those that are so concerned about the federal loans granted for green projects missed this one.

Tesla Motors announced Wednesday that it has repaid a $465 million loan from the government nearly a decade before it was scheduled to do so.

The electric-car maker received the loan from the Department of Energy in January 2010, and it made its first payment this past December. That began what was supposed to be a 10-year repayment program, but plans have changed.

Tesla (TSLA) reported its first quarterly profit earlier this month, and Consumer Reports came out with a review calling the Tesla Model S the best car it ever tested. Those two facts, along with a significant short squeeze, helped send the stock soaring to record highs.

Tesla announced last week that it would sell additional shares of stock, and that founder Elon Musk would make a new $100 million investment as well. The company said it would use some of the proceeds to repay the loan this week.

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

[Mr. Big Dog 10,747]

Faster than Detroit, No?

Different program but yes.

[The Nature Boy 4,224]

Odd that those that are so concerned about the federal loans granted for green projects missed this one.

and meanwhile down stream Fisker automotive is about to file bankruptcy and default on 529 million dollar loan. Another 50 billion and we might be getting somewhere.

[Mr. Big Dog 10,747]

and meanwhile down stream Fisker automotive is about to file bankruptcy and default on 529 million dollar loan. Another 50 billion and we might be getting somewhere.

Thus far less than 2% of the loans defaulted and not but 10% of the reserves that Congress has set aside have been called up to cover those defaults. Not a bad bottom line. When you go into cutting edge technology entering new technology territory, not every venture will succeed. Simple as that. Any venture capitalist will tell you that.

[Karee 4,190]

Even a blind squirrel finds an acorn now and then.

[Mr. Big Dog 10,747]

Even a blind squirrel finds an acorn now and then.

If that was the case, the loss ratio would be far higher. But thanks for playing.

[The Nature Boy 4,224]

Thus far less than 2% of the loans defaulted and not but 10% of the reserves that Congress has set aside have been called up to cover those defaults. Not a bad bottom line. When you go into cutting edge technology entering new technology territory, not every venture will succeed. Simple as that. Any venture capitalist will tell you that.

Translated. It's Obama s program. A few billion down the toilet to fat cat donors is ok. If it fails blame bush

[TBoneTX 45,308]

*** Unanswered duplicate thread removed (begun by another poster). ***

[Mr. Big Dog 10,747]

Translated. It's Obama s program. A few billion down the toilet to fat cat donors is ok. If it fails blame bush

No. Translated: That's reality. That's the reality of venturing in new territory - not every venture succeeds and not every venture turns a profit. That's where government guaranteed loans come into play in order to allow for that innovation to take place. That's why Congress sets aside reserves in the funding of these programs to absorb certain losses that are to be expected. The losses are less than 2% of the program - that's not bad by any standard. And it's never been any different. This may have escaped you between filling soap bottles and consuming Fox News but that's what goes on in the real world. Get out more!

[Karee 4,190]

Good to hear the government has all this extra money laying around to get into the venture capital business.

National debt as of today: 16.8 trillion.

[Mr. Big Dog 10,747]

Good to hear the government has all this extra money laying around to get into the venture capital business.

National debt as of today: 16.8 trillion.

Sure, you can take a defeatist position and cede the future to other nations. You can also start saluting the French flag while you do that. Or you can make investments to re-assert the leadership role America once attained. Coming out of World War II, this nation made investments into the future against the backdrop of far greater debts relative to the size of the economy. And it paid off. Big time. This country used to be on the cutting edge of technology. And then the forces of yesterday took over and worked hard to destroy the future of our children and the future of this nation.

[Karee 4,190]

Sure, you can take a defeatist position and cede the future to other nations. You can also start saluting the French flag while you do that. Or you can make investments to re-assert the leadership role America once attained. Coming out of World War II, this nation made investments into the future against the backdrop of far greater debts relative to the size of the economy. And it paid off. Big time. This country used to be on the cutting edge of technology. And then the forces of yesterday took over and worked hard to destroy the future of our children and the future of this nation.

I have a problem with the govt. getting into the investment banking business when we have that much outstanding debt. It's like someone saying they want to invest in an ice cream shop while they have an 80k credit card bill they haven't paid and they still keep running up more debt on it. Doesn't seem logical. Also, it's an unfair advantage given to Elon Musk. He should have to go out and get venture capital like anyone else. From what I can see, the guy isn't having a problem raising private capital.

How do you feel about letting people invest some of their Social Security witholdings into the private equities market?

In case you haven't noticed, we're not coming out of any situation like World War II.

[Mr. Big Dog 10,747]

From what I can see, the guy isn't having a problem raising private capital.

Now he doesn't. That's why he paid the loan back early. He needed that bridge to get there, though. A viable company, good jobs, future technology made in the USA. Cost to the taxpayer? Nothing. What's the issue?

No, we're not as indebted as we were after World War II. We have more room to breathe today than we did back then. Back then, people with vision and courage governed. Today, we have the GOP suffocating the country by doing absolutely nothing. well, they're doing something. They work hard to leave all promising future economic opportunities to other nations. It's as dumb as it gets.

[Karee 4,190]

Now he doesn't. That's why he paid the loan back early. He needed that bridge to get there, though. A viable company, good jobs, future technology made in the USA. Cost to the taxpayer? Nothing. What's the issue?

No, we're not as indebted as we were after World War II. We have more room to breathe today than we did back then. Back then, people with vision and courage governed. Today, we have the GOP suffocating the country by doing absolutely nothing. well, they're doing something. They work hard to leave all promising future economic opportunities to other nations. It's as dumb as it gets.

He didn't need any bridge to get anywhere. Elon Musk' net worth is somewhere around 2.7billion Maybe Ferrari or Lamborghini could use some govt. loans as well. Apparently the Tesla S base price is somewhere between 60k and 100k USD.

You're no different than the Republicans you bash. You think it's great the federal govt. giving loan guarantees to billionaires when it's for a product you like.

And here all this time I thought you were for helping out the little guy.

[Mr. Big Dog 10,747]

He didn't need any bridge to get anywhere. Elon Musk' net worth is somewhere around 2.7billion Maybe Ferrari or Lamborghini could use some govt. loans as well. Apparently the Tesla S base price is somewhere between 60k and 100k USD.

You're no different than the Republicans you bash. You think it's great the federal govt. giving loan guarantees to billionaires when it's for a product you like.

And here all this time I thought you were for helping out the little guy.

I am for helping out the little guy. Investments into future technologies which translate into jobs for the little guy is how that is done. You can try and hang on to the jobs of yesterday all you want but they won't be here tomorrow. Tomorrow's jobs is what will put food on the table. The question merely is whether that food is put on a table in America or on a table in Europe or Asia or Australia. I'd rather have it put on a table here. For that to happen, we need to be competitive. And that we won't be unless we start making investments in the technology that will once again revolutionize the global economy. We've done that in the past in a very non-controversial way. And it's been successful. Other nations are doing it. I'd rather they not get any more of a head start than they already have because we are continuing to neglect this vital area.

And trust me, I am very different than the backwards oriented crowd that I like to bash. I am forward oriented, they want to move back into caves.