The US Department of Energy announces approval of $465 million in low-interest loans to the company. The company says it will spend $365 million on manufacturing the Model S. The rest of the money will be invested in a new plant that will make battery packs and electrical vehicle parts for Tesla and other automakers, including Daimler.
Here’s the cool thing: if you handed one of our motors to Nikola Tesla, he’d recognize it immediately as his own invention. Nice job of optimization, but clearly his. That’s why we’re Tesla Motors.
Tarpenning and Eberhard will also finance the company until its preferred stock is first offered to investors in a Series A funding round.