If I recall correctly, the DOE loan is very low interest rate, repayment is based on metric milestones, and at the time financing via traditional capital markets was fairly difficult for almost anyone.
Seems like Tesla got a great deal.
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Yeah, but the government itself is borrowing money at absurdly low interest rates right now. If you agree with the notion that government intervention to get an edge in strategic industries can be a good idea, it looks like a good loan at whatever rate they got (assuming it's higher than a 1/8 of a percent, the gov't turns a profit, too).
If you agree with the notion that government intervention to get an edge in strategic industries can be a good idea, it looks like a good loan at whatever rate they got (assuming it's higher than a 1/8 of a percent, the gov't turns a profit, too).
I agree with this notion. Why not use whatever resources available to gain a competitive edge?