Feds Lend Tesla $465 Milllion to Build Model S

Discussion in 'BEV or Battery Electric Vehicle' started by SlowHands, Jun 24, 2009.

  1. SlowHands

    SlowHands Hypermiling Ironman

    [​IMG] Tesla said its share of the pie will help get the Model S sedan (pictured) on the road by the end of 2011.

    [FIMG=LEFT]http://www.cleanmpg.com/photos/data/501/2011_Tesla_S_Sedan_Drivers_Side_Front_Profile_Headline.jpg[/FIMG]Ken Gordon - CleanMPG - June 23, 2009

    The Obama Administration will lend Tesla Motors $465 million to build an electric sedan and the battery packs needed to propel it. It’s one of three loans totaling almost $8 billion that the Department of Energy awarded today to spur the development of fuel-efficient vehicles.

    Energy Secretary Steven Chu announced that the Department of Energy is also lending $5.9 billion to Ford to retool factories in five states. Nissan will receive $1.6 billion to refurbish a factory in Tennessee to produce electric cars. The loans are the first awarded under the $25 billion Advanced Technology Vehicle Manufacturing Program to help automakers offset the cost of retooling to build eco-friendlier cars that are at least 25 percent more fuel-efficient than 2005 models.

    “We have a historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made in America,” the president said in a statement. “These loans — and the additional support we will provide through the Section 136 programs — will create good jobs and help the auto industry to meet and even exceed the tough fuel-economy standards we’ve set while helping retain our competitive edge in the world market.”

    San Carlos, CA. -- Tesla received approval for approximately $465 million in low-interest loans from the US DOE to accelerate the production of affordable, fuel-efficient electric vehicles.

    Tesla will use $365 million for production engineering and assembly of the Model S, an all-electric family sedan that carries seven people and travels up to 300 miles per charge.

    The Model S has an anticipated base price of $49,900 after a $7,500 US federal tax credit. It has lifetime ownership costs equivalent to a conventional car with a sticker price of $35,000, thanks to the lower cost of electricity vs. gasoline and a relative lack of service and maintenance. Tesla expects to start Model S production in late 2011 in a state-of-the-art assembly plant employing about 1,000 workers.

    Tesla will use $100 million for a powertrain manufacturing plant. The facility will supply all-electric powertrain solutions to other automakers, greatly accelerating the availability of mass-market EVs. The new facility will employ about 650 people.

    Tesla is in the final stages of negotiation for facilities in California.

    The loans are part of the Advanced Technology Vehicle Manufacturing Program, which provides incentives to new and established automakers to build more fuel-efficient vehicles. Created in 2007 and appropriated in September 2008, the $25 billion ATVM aims to reduce America’s dangerous dependence on foreign oil and create “green collar” jobs. The program is entirely unrelated to the stimulus package or the so-called “bailout” funds that General Motors and Chrysler have received.

    “Tesla will use the ATVM loan precisely the way that Congress intended -- as the capital needed to build sustainable transport,” said Tesla CEO and Product Architect Elon Musk. “We are honored that the US government selected Tesla to be among the first companies to participate in this progressive program.”

    Building on Proven Technology

    The Model S sedan features exceptional performance, styling and utility, with unrivaled cargo and passenger space. Its floor-mounted powertrain is the culmination of a half-decade of engineering in the heart of California’s Silicon Valley, where Tesla developed the Roadster.

    The highly acclaimed Roadster is the first production battery electric vehicle to travel more than 200 miles per charge and the first US- and EU-certified Lithium-Ion battery electric vehicle. With an estimated range of 244 miles per charge and zero tailpipe emissions, it’s the first production vehicle to offer supercar performance with a clean conscience.

    Tesla has never applied for federal funds for the Roadster, an American sports car that consumes no gasoline whatsoever. Tesla expects the Roadster business unit to be profitable in the third quarter. Privately held Tesla will finance sales and marketing for the Model S through private capital.

    Tesla has delivered more than 500 Roadsters to customers. Later this month, Tesla will begin delivering its second-generation Roadster and Roadster Sport, an even higher-performance vehicle.

    Teslas do not require routine oil changes or exhaust system work. They have far fewer moving (and breakable) parts than internal combustion engine vehicles. They qualify for federal and state tax credits, rebates, sales tax exemptions, free parking, commuter-lane passes and other perks. The Model S costs roughly $5 to drive 230 miles – a bargain even if gasoline were less than $1 per gallon.

    The Model S, which carries its charger onboard, can be recharged from any conventional outlet. Three battery pack choices will offer a range of 160, 230 or 300 miles per charge. Tesla is taking reservations online and at its two showrooms in California.

    Tesla will expand its network of showrooms this summer with stores in New York, Chicago, Seattle and Miami. Tesla will open its London showroom June 25, followed by Munich and Monaco. Additional stores will be opened in Washington DC and Toronto.
     
    Last edited by a moderator: Jun 28, 2009
  2. Gordon

    Gordon Highland Hypermiler

    Nice one :D But didn't Tesla already secure enough deposits to build the car before the Administration jumped in?

    Nice to see investment towards EV's though. Finally people are realizing the future. Lets hope the "EV wars" don't get repeated.
     
  3. Right Lane Cruiser

    Right Lane Cruiser Penguin of Notagascar

    This would be an ideal family car and with the top end battery, it would even have enough range for the vacationing that my family does!

    I'm happy to see that Tesla will be able to move forward without delays on this vehicle. :D
     
  4. 99LeCouch

    99LeCouch Well-Known Member

    I want...

    Hmm, we'd be all about voltages and whatnot hypermiling one of those.
     

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