Tesla paid its $ 465 million loan from the US Department of Energy nine years early, and in doing so, the company had to pay an “early repayment penalty”. This was recently mentioned by CEO Elon Musk in a comment on Twitter.
Musk’s remark came in response to news from Germany, which noted that Tesla would no longer use government subsidies to build the 4680 battery production and recycling plant at Gigafactory Berlin. This was quite surprising to many since the company was ready to receive subsidies worth around 1.2 billion dollars for its upcoming battery plant.
According to Musk, Tesla’s decision in Germany was partly due to lessons learned by the company in the United States. The CEO noted that the loan’s burdensome terms eventually ended up exceeding the value of the money Tesla received. Thus, the company decided to pay the loan of 465 million dollars early, even though it had to pay an “early repayment penalty”.
This was quite surprising to many, as Tesla ended up being negatively stimulated, not because it did not pay down the loan; but because it paid down on the loan early. In comparison, the US government ended up losing $ 11.2 billion in the rescue of General Motors, a company that, at least according to US President Joe Biden, is leading the electric car revolution.
Tesla’s $ 465 million DoE loan remains a key point of criticism among the company’s critics, many of whom continue to insist that the electric car maker exists only because of a steady influx of government subsidies. It should be noted, however, that Tesla’s most successful quarters, especially recently, were achieved with very few subsidies, at least in the United States.
Tesla’s electric vehicles will not even get the full EV incentives from the Biden administration due to the company’s non-professional workforce, but the vehicles like the Model Y are still on their way to being one of the most successful electric vehicles on the market today. . The same goes for the rest of Tesla’s upcoming vehicles, such as the Cybertruck and Semi, both of which are likely to disrupt the utility market.
Do not hesitate to contact us with news tips. Just send another message [email protected] to give us a heads up.