Purveyor of all things electric, automaker Tesla has asked the federal government for yet another loan to get its Model S electric sports sedan off the ground and into production.
Tesla secured a $465 million loan in 2009 from the U.S. Department of Energy to build its Palo Alto, Calif. headquarters and refurbish the former General Motors-Toyota NUMMI joint-venture plant in Fremont, Calif. Tesla recently asked for an undisclosed loan figure to shore up its production abilities.
The electric car startup has publicized that its initial loan helped generate 1000 new jobs. Details have not been mentioned on what the new loan would go toward specifically.
Meanwhile, House Republicans have introduced the idea of cutting President Barack Obama’s green jobs bill — a program that fostered the original loan Tesla received. Because of the massive sweeps to reduce the $17 trillion debt load carried by the U.S., there’s a very real possibility it could happen. Such a cut could halt Tesla’s working capital, putting the company in jeopardy or forcing it to find greener pastures for financing.
We’ll keep you posted with the latest updates as they happen in this startup’s saga.
Source: San Francisco Chronicle
By Jacob Brown