Transport

The US Department of Energy (DOE) is loaning electric carmaker Tesla Motors $465 million to construct a manufacturing facility in California to produce its Model S family sedan.

Tesla plans to start manufacture of the Model S, which will have a range of 160-300 miles per charge, in 2012 and hopes to be producing 20,000 vehicles a year by the end of 2013.

As well as the facility in southern California, the loan will also support the setting up of a a power-train manufacturing facility in Palo Alto, which will assemble electric vehicle battery packs, electric motors, and related control equipment for other carmakers as well as Tesla.

The move is the latest in a series of substantial loans granted by the DOE to US carmakers, including $5.9 billion to Ford, along with Nissan, which plans to produce electric cars and battery packs at its manufacturing site in Smyrna, Tennessee, and Fisker Automotive, which is taking over a former GM plant in Wilmington, Delaware to produce its plug-in hybrids.

For further information:
www.energy.gov
www.teslamotors.com/

Related stories:
US announces $187 million boost to vehicle efficiency (12-Jan)
Fisker Automotive to build electric cars at former GM plant (28-Oct 2009)
Electric carmaker Fisker receives $528 million government loan (28-Sept 2009)
US Government loans Ford $5.9 billion to produce fuel efficient cars (18-Sept 2009)
US Government loans $8 billion to Ford, Nissan and Tesla for advanced vehicles (25-Jun 2009)