Tesla Secures $465M Federal Loan to Build Tesla Model S

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Electric car manufacturer Tesla has secured $465 million in federal funding to expand its vehicle offering and production line.  The $465 million low-cost Energy Department loan will help build a Southern California plant for the forthcoming Tesla Model S, as well as a powertrain facility in Palo Alto, California.

U.S. electric car manufacturer Tesla Motors was the fourth auto maker to receive a low-cost Energy Department loan from the U.S. government.  Ford Motor Company, Fisker Automotive and Nissan each received loans to build out their electric car development plans.  Tesla Motors will focus this loan on two initiatives, the Southern California Tesla Model S plant and a powertrain facility in Palo Alto, California.  These facilities will create an estimated 1,600 jobs, while the former is slated to produce 20,000 Tesla Model S electric sedans by the end of 2013.

The first models of the Tesla Model S will roll out of the Southern California plant in 2012, selling for $50,000 after a $7,500 U.S. tax credit.  The Tesla Model S is a four-door electric car that produces no tailpipe emissions and sports a 300-mile driving range on a single charge.  Having recently sold its 1,000th Tesla Roadster, this investment by the U.S. Energy Department will help Tesla expand its offering and put more U.S.-made electric vehicles on the road in the very near future.