For Immediate Release - May 23, 2013
Washington DC - The American Council On Renewable Energy (ACORE) applauds Tesla Motors for successfully paying off its $451 million Advanced Technology Vehicle Manufacturing Loan Guarantee with the Department of Energy nine years ahead of schedule. With the Tesla Motors federal loan early pay-back, taxpayers earned $26 million, according to the Department of Energy. ACORE fully supports the DoE Loan Guarantee Program, which leverages private sector innovation and advances the United States in the global race to become the world’s most prosperous clean energy economy.
“Tesla’s success shows that no matter how detractors misconstrue the facts, no matter what the incumbents of energy claim about alternative energy, clean energy is all about economics and technological innovation—the sort of innovation Tesla has boldly demonstrated,” said ACORE President and CEO, Vice Admiral Dennis McGinn. “Tesla is revolutionizing the way vehicles are designed, engineered, driven, fueled, and looked at. When people see Tesla’s and other electric vehicles all over the road in the future, they can thank American ingenuity and entrepreneurship, and DoE for helping make that achievement possible through another great example of public-private partnership.”
The Department of Energy Loan Guarantee Program is an overwhelmingly productive program that has a 97% success rate and has repeatedly moved to protect taxpayers when companies showed signs of default. DoE’s role in providing capital to companies that strive to deploy clean energy technologies is paying dividends to the American economy, creating American jobs, and bolstering our country’s energy and environmental security.
Government loan guarantees have a long history in the United States in helping bridge gaps in private finance for newly commercial technologies and have supported many American industries from housing to agriculture. The DoE Loan Guarantee Program was created in 2005 with Republican and Democratic support to address the “Valley of Death” market-dynamic where promising new technologies entering the commercial space face difficulty in obtaining financing because they are not fully proven at commercial scale. The Valley of Death, acknowledged on a bipartisan basis, is an important market gap where government support plays an important role to spur domestically manufactured and other innovative technologies. ACORE believes that Tesla repaying its DoE loan nine years early is both a testament to clean energy innovation and a significant demonstration of the value and merit of DoE's Loan Guarantee Program, together energizing the American economy with clean energy.
ACORE, a 501(c)(3) non-profit membership organization, is dedicated to building a secure and prosperous America with clean, renewable energy. ACORE seeks to advance renewable energy through finance, policy, technology, and market development and is concentrating its member focus in 2013 on National Defense & Security, Power Generation & Infrastructure, and Transportation. Additional information is available at www.acore.org.