1. In discussions with the DOE, Tesla has never asked for or even hinted at postponing repayment of the loan. We did suggest that holding nine months worth of principal payments in *advance* in a reserved account was a bit extreme and, moreover, was never part of our original loan agreement. The DOE agreed and reduced the advance payment reserve account to six months. At the risk of being repetitive: Tesla has always made its DOE payments on time and has never asked to delay repayment ever. I don't know how to state this more clearly.
2. The DOE's desire for advance payment of the overall loan stems from a concern that is the complete opposite of what many assume. The DOE believes Tesla will be highly successful and accumulate a large amount of cash, but that we may then choose not to pay off the loan any sooner than is currently required. Far from being worried about our survival, the DOE is highly bullish about our future and doesn't want us to delay early repayment of the loan if we have the cash on hand to do so.
The DOE has simply asked if we would be willing to repay the loan early if we have excess cash. The answer is unequivocally yes and I am happy to announce that we will be initiating an advance payment today to prefund the principal payment that is due in March 2013. The purpose of the DOE Advanced Technology Manufacturing Program was to serve as a catalyst for accelerating sustainable transport technology, which is in the best interests of all Americans and ultimately people throughout the world. In the case of Tesla, the result has been a resurgence in American manufacturing ability and the creation of over 3500 high quality jobs. Nonetheless, we have a duty at Tesla, having accepted this loan as a portion of our capital, to repay it at the earliest opportunity. We will do exactly that.
Elon
and he said it so proudly
