Tesla Motors will probably repay its loan from the Department of Energy (DOE) Wednesday, nine years ahead of schedule, CEO Elon Musk announced on Twitter on Monday.
Last week, Tesla announced it would take advantage of its soaring stock price to raise more money, which it would use to make the payment.
The $465 million loan was part of the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) program, created by the 2007 Energy Independence and Security Act to allocate $25 billion to fund highly fuel-efficient vehicles.
Tesla is not required to pay the loan back until DOE until December 2022, according to Bloomberg.
Early repayment would be a win for both Tesla and the DOE, which has a lackluster track record of approving loans for automakers.
Of the five companies selected under the ATVM program, two have flopped. Now-defunct Fisker Automotive drew down $193 million of the $529 million it was promised before the DOE froze its access to the money over missed production deadlines.
The Vehicle Production Group (VPG), a maker of wheelchair-accessible vans that received $50 million, stopped operations in February after the DOE froze its assets, when its finances fell below the threshold required by the loan.
Here’s Musk’s tweet:
Given govt loan repayment this week (prob Wed), Supercharger update will be next week. Work continuing independent of announcement.
— Elon Musk (@elonmusk) May 20, 2013
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