In a new article on Tesla’s blog, Diarmuid OConnell, Tesla’s Vice President of Business Development, is “clearing the air” on the company’s Department of Energy loan. The electric-vehicle company received a total of $465 million in low-interest loans from the DOE, $365 million of which it will use for the production and assembly for the Model S sedan.
Besides that, OConnell said that Tesla will use the money to build a “powertrain manufacturing facility in Northern California, which will build advanced EV powertrain components for other automakers.”
“We hope that technology will enable other manufacturers to get affordable EVs on the market much faster than developing the technology themselves,” OConnell wrote. “The facility will employ about 650 workers. We already sell EV components to Daimler, which will soon begin marketing an electric version of its popular and affordable Smart car.”
However, the most interesting thing OConnell wrote in his post was that the Tesla Model S platform will spawn other Tesla models.
“The Model S platform will also be used for derivatives including a minivan, cross-over utility vehicle and a utility van for fleets and other industrial or civic uses,” OConnell wrote.
Tesla Motors is also planning a mass-market electric-vehicle for less than $30,000.
– By: Omar Rana