Tesla plans to repay loans early, delays Model X
Tesla Motors Inc. said in its annual report Thursday that it has received federal approval to complete the repayment of its $465 million in U.S. Energy Department loans five years ahead of schedule.
The Palo Alto-based car company run by billionaire co-founder and Chief Executive Elon Musk had received the loan to develop and build electric cars.
Tesla spokeswoman Shanna Hendriks said that the company had been scheduled to complete repayment by mid-December of 2022 but had instead arranged to complete the task by the end of 2017.
The manufacturer of the battery-powered Model S sedans had caused some concern among Wall Street analysts when it delayed its 10K filing, but analysts said they were satisfied once they heard the reasons.
“According to the company, the filing was delayed due to a last-minute change in the auditors’ policies for classifying cash flows, and was not due to any errors on [Tesla’s] part,” said one note to investors from the equity research firm Jefferies LLC.
“We believe there is no reason for further concern at this time,” the Jefferies report added.
Tesla also reported in the 10K filing that sales of zero-emission vehicle credits and greenhouse gas credits had increased to $40.5 million, up from only a few million in previous years.
Tesla did not disclose the companies it had sold the credits to.
The automaker said that potential customers awaiting its upcoming Model X--billed as the best of an SUV with the benefits of a minivan, in an electric car--were going to have to wait a bit longer.
Production on the Model X had been expected to begin late this year, with deliveries beginning in 2014. Production has now been pushed back to late 2014.
Hendriks said that the company has been more focused on its battery-powered Model S sedan, with deliveries forecast to rise to a record 20,000 this year.
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