Tesla Motors, a California company that is manufacturing pure, 100 percent electric cars, has received a $465 million low cost loan from the U.S. Department of Energy.According to the Detroit News, the money will be used to construct a factory in Southern California for the manufacturing of the Model S electric sedan as well as a manufacturing plant for the construction of powertrains.
The Palo Alto plant will assemble electric vehicle battery packs, electric motors, and electric vehicle control equipment.
Elon Musk, CEO of Tesla, told reporters at the North American International Auto Show in Detroit that his company has produced 1,000 Tesla Roadsters in less than two years. Musk said that it would take two to two and a half years to produce the first Model S from the beginning of the plant construction.
Reports say that the government has given about $9 billion in loans and has $16 billion for more loans. The Energy Department said that it plans to make more loans to manufacturers of electric cars in the next several months. It has already provided funds to Ford, Fisker, and Nissan.