Tesla CEO vows to pay off DOE loan early

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Associated Press

Posted on February 26, 2013 at 5:00 PM

Updated Wednesday, Feb 27 at 1:01 AM

WASHINGTON (AP) — The CEO of electric car maker Tesla Motors says his company plans to pay back an Energy Department loan in half the time required by the government.

Tesla CEO Elon Musk said Tesla plans to pay off the $465 million federal loan in five years, rather than 10 years. Musk made the comment Tuesday at a summit on energy innovation, where he appeared on stage with Energy Secretary Steven Chu and defended the Obama administration's clean energy program.

The Palo Alto, Calif., company received the DOE loan in 2010. The first payment was due late last year, with final payment in 2022. A company spokeswoman said Tesla hopes to pay off the loan by 2017.

The company made its first payment of nearly $13 million in December.

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