Tesla will have to pay back DOE loan early, says it’s ready to do so
The 0-60 mile per hour acceleration time of the top-of-the-line Tesla Model S is 4.4 seconds. Now, the federal government is looking for Tesla Motors to similarly pick up the pace.
The electric vehicle maker, which received a $465 million credit line from the U.S. Department of Energy, is being asked to speed up its repayment pace once Tesla starts paying off the loans later this year, the company said in a Securities and Exchange Commission document.
Tesla is supposed to begin payments in December and has until October 31 to put together a proposal outlining its faster repayment schedule. This new schedule is required because of a September 24 waiver that changes Tesla’s specified current ratio of assets to liabilities, writes Bloomberg News. Tesla CFO Deepak Ahuja told Bloomberg that the company could beat its 10-year repayment schedule if Tesla becomes profitable earlier than expected. Thus far, the DOE told Bloomberg, “Tesla has made loan payments on time and in full.”
Earlier this week, Tesla, which has never been profitable, reduced its 2012 revenue forecast by about $160 million to as much as $440 million because of supplier issues and other delays related to the Model S, and said it was about a month behind schedule with its vehicle deliveries. As of September 23, reservations stood at about 13,000. Tesla said in July that it may start repaying its loan before its first payment due-date in December. As of late June, Tesla had yet to draw down the last $33 million of the loan.
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By Danny King