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Jun 3, 2013

DoE Lost Billions in Deal with Tesla

An article on Slate.com has basically claimed that the government lost more money investing in Tesla than it did in Solyndra. A bold statement considering that Solyndra defaulted on its loan, and Tesla has already paid their loan off, nine years early, and with interest; but here is the reasoning.

In 2009 the global financial crisis was still in full affect. General Motors and Chrysler were heading towards bankruptcy and Tesla had suffered a year of layoffs, cancelled orders, and record losses. The US Department of Energy came to Tesla's rescue with an offer to lend the company $465 million at incredibly low interest rates. Four years later and Tesla is a roaring success. Valued at more than $12 billion on Wall Street it offers a sharp contrast to Solyndra.

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