Tesla CEO Elon Musk Makes News

Like Autoblog pointed out, GM's Bob Lutz was often the most quotable auto executive out there, proving over and over again his propensity to say - interesting - things and get headlines because of it. Apparently Elon Musk thinks so as well. Free publicity!

It all started with an original editorial in the New York Times, back in November of 2008. In the article columnist Randle Stross ripped Tesla. Witness: “It's all-electric technology remains woefully immature and don’t-even-ask expensive....The Roadster is not much more than a functioning concept car that sells for $109,000.”

Needless to say, it was scathing. After a dustup with Tesla buyer and Silicon Valley tech guy John Calcanis, apparently NYT did a retraction and the article was rewritten. Why this is still relevant right now, I don't know.

Elon Musk's opinion of Stross? "He's an idiot". In the interview he laid down his opposing viewpoint on the loan program and reasons why Tesla should receive the money. Completely objectively, the pro-loan argument makes the most sense. Tesla is nearly tailor-made for the requirements of the government loan program. The amount being asked for is a very small portion of the program, (1.5% as Musk points out). Shouldn't we diversify rather then just put our eggs all in one basket?

Other news to come from the interview; the Model S from start to completion is a $400 million development program, $350 million of which Tesla expects from the Department of Energy loan program. We finally get a pricetag on the entirety of the program.

As I've said before, it isn't a bailout, it's a loan from a program conceived before TARP or the Detroit Three.

Also, Musk says he "99 percent confident" Telsa will get the funds, and says that no existing investors, inluding him, common stock holders or employees will get repaid until the entire loan is returned from the government.

That's news!. Because Musk has invested huge amounts of his own capital into the company and so have other investors (that support Tesla getting this loan). Obviously that puts a huge incentive for them to deliver on the Model S and profitability.

Musk has made similar comments before, but he also promised to guarantee deposits on the Model S, which he is certain will enter production. “I’m personally standing behind the reservation payments,” he said. “If anyone is concerned about us going out of business, the only thing you should worry about is if I get hit by a bus,” he joked.

(He's got an insurance policy to cover that too though). He was also asked about the recent $85 million funding round completed by Fisker. He commented that the amount wasn't enough to see the car through to production and so it didn't really matter. Financial market issues prevented Tesla from closing an $100 million round last year, so they did an additional, internal round that raised $40 million, with the goal of carrying the Roadster to profitability.

Very interesting interview! Now the Department of Energy just needs to disperse those funds.