Electric luxury automaker Tesla Motors Inc. may receive a loan for $350 million from the U.S. Department of Energy's $25 billion program to encourage building of more fuel efficient cars.
Although the Department hasn't given final approval for the loan to Tesla, the automaker said yesterday that the DOE said it should disburse the loan in the next four to five months, according to Rachel Konrad, spokeswoman for the firm, the Associated Press noted.
The Department of Energy has said it will put to work projects for renewable energy within this year to create jobs, as President Barack Obama's pushes Congress and his administration to restore financial and economic stability.
Tesla is planning to use the loan money to build a plant in which will manufacture a model S sedan of its all electric vehicles. The firm will begin construction of the four-door sedan car in 2011 but will show a drivable prototype on March 26 at Tesla's factory SpaceX in California, the CEO Elon Musk said in a newsletter Wednesday according to reports.
After a government tax credit of $7,500, the company will sell the Model S car for less than $50,000, it said.
Tesla's Roadster Sport model car sells starting at $128,500 in the U.S. So far the company has delivered more than 150 Roadsters and has sold out the model for 2009, according to Musk.
Tesla is based in San Carlos, California.