Tesla Raises $465 Million From Department of Energy

Posted Jun 23, 2009

About a month after Daimler put in an investment worth 10% equity in Tesla, the U.S. Department of Energy announced that they are putting an additional $465  million loan in the company.  Tesla will be using the loan to develop the Model S sedan.

It is pretty impressive that Tesla was able to convince the federal government to give them the loan considering that Tesla is far from profitability.  Tesla has also increased the price of their automobiles for customers that have already put down deposits. The Model S prototype does not have much to show in terms of a prototype yet either.  But what Tesla had was the Governor of California’s support.

Over the next two and a half years, Musk will need to build a powertrain factory and make the Tesla vehicles more affordable to reach a profit.  That’s quite a feat to pull off and we wish Mr. Musk well.

[via Gawker]