Tesla Sedan Development Rests On Government Loan Package

It seems the $25 billion promised by the U.S. Department of Energy to encourage the development of green vehicles wasn’t being eyed by the Detroit Three alone. EV manufacturer Tesla Motors claims it’d like some of the pie – and that development of future models could rest solely upon such an investment.

The Detroit Free Press reports that Tesla Motors CEO Elon Musk says without a $350 million loan from the government, a many plans previously announced by the automaker are in danger of being canceled. Notably, development on the now-stillborn Model S sedan, along with the construction of a previously-announced factory in San Jose, California, is hinged upon the possibility of grant money.
Musk said that with the aid, the firm could reportedly sell approximately 20,000 examples of the sedan annually by 2011, each carrying a base price of approximately $57,000. Without the aid, however, he noted that Tesla would “need to wait until the capital markets recover, which could be a year or two years from now.”
Source: Detroit Free Press