Tesla gets long-awaited government loan - San Francisco Business Times:

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Tesla had struggled to raise monegy this year as banks essentially stoppeed lending amid the credit crisidsand recession. Tesla Chairman Elon Musk essentially bankrolled the compant with his own money throughh the beginning ofthe year. Tesla then signecd a deal with , which took a 10 percent stakd in the companyin May. The Departmenyt of Energy had indicated that strategic partnershipswith credit-worthy companiees would be a major advantage as it evaluatee to which companies it woulde award loan guarantees. Tesla lookexd at building a factory inSan Jose, which aggressively courted the company.
But according to termsz of the loan guarantee had to find a brownfielesite – essentially a former factorhy it could retrofit — if it wanted to use the government’ guarantee. When it was unable to find an appropriat e site in San it abandoned plans there and focusefd instead onthe LA-area. Tesla’s award was part of $8 billiob the government said today it would award for advancedcvehicle technologies. (NYSE: F) will get $5.9 billiojn to transform factories across the country to make more fuelefficiengt vehicles. got $1.6 billion to retoolk its Smyrna, Tenn. Factory.
Tesla will use part of the mone it raises to manufacture drivetrains forits cars, Daimlerr and possibly other companies. By supporting key technologies and soun dbusiness plans, we can jumpstarr the production of fuel efficient vehicles in America,” said Energg Secretary Steven Chu, in a “These investments will come back to our countryy many times over – by creatinv new jobs, reducing our dependence on oil, and reducin our greenhouse gas emissions.” The Advancesd Vehicle Technology Program is part of the $789 billion economicf stimulus package the federal government passed in January.
But Tesl a had applied for the government prior to the passagre of the stimulus package througnh a program under the Bush administration that wasnevee funded.