Editor’s Note: Related tickers: Tesla Motors Inc (NASDAQ:TSLA), Ford Motor Company (NYSE:F), JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), Morgan Stanley (NYSE:MS)
Tesla’s loan payback would give Obama a green-energy win (AutoNews)
Tesla Motors Inc (NASDAQ:TSLA) is giving President Barack Obama’s green-energy strategy its biggest win after almost two years of failures pounced upon by Republicans. The maker of the electric Model S car as early as today will become the first recipient of a U.S. Energy Department vehicle loan to pay off its debt. The Palo Alto, Calif.-based company will do so nine years ahead of schedule, with taxpayers making at least $12 million on the $465 million loan. Tesla Motors Inc (NASDAQ:TSLA)’s payoff may quell critics who said Obama shouldn’t have acted like a venture capitalist in picking green-energy companies to receive government loans and grants. Republican lawmakers have held up the bad bets made on plug-in car maker Fisker Automotive Inc., its battery supplier A123 Systems Inc. and solar-panel maker Solyndra LLC as examples of rewarding untested companies for political reasons.
Here’s What Elon Musk Tweeted About Tesla’s Loan On Monday (WallStCheatSheet)
There’s no place like Twitter to make an announcement … at least Elon Musk, Chief Executive of Tesla Motors Inc (NASDAQ:TSLA) thinks so. He used the 160-characters-or-less social media platform Monday to state that the automaker may repay its loan from the U.S. Department of Energy as early as Wednesday. Musk’s tweet read: “Given govt loan repayment this week (prob Wed), Supercharger update will be next week.” We have to hand it to Musk, the billionaire who owns 27.5 percent of Tesla Motors Inc (NASDAQ:TSLA). He’s nothing if not efficient.
Tesla shares pull back slightly after huge gains (CNBC)
Tesla Motors Inc (NASDAQ:TSLA) fell more than 5 percent in early trading Tuesday, a brief decline amid huge gains this month after the electric car maker posted its first quarterly profit. And shares in the Palo Alto, Calif., company retook some of that lost ground by early afternoon. Tesla Motors Inc (NASDAQ:TSLA)’s stock price had jumped 74 percent between May 8, when first-quarter earnings were announced, and May 14, when it hit a 52-week high of $97.12. The shares have more than tripled in value since hitting a 52-week low of $25.52 in August of last year.
Tesla Motors’ Success Gives Electric Car Market a Charge (NationalGeographic)
Tesla Motors Inc (NASDAQ:TSLA), the Silicon Valley electric carmaker, is riding high. The company reported its first-ever quarterly profit this month and saw its stock price shoot upwards of $97 per share—an all-time high. At more than $10 billion, the company’s market value is now greater than that of established automakers Fiat and Mitsubishi Motors. And for icing on the cake, Tesla Motors Inc (NASDAQ:TSLA)’s first made-from-scratch car, the electric Model S sedan, has received a rare near-perfect score from Consumer Reports. Noting the difficulty of starting a successful auto company, evoltven Bill Ford, the executive chairman of Ford Motor Company (NYSE:F), commented, “My hat’s off to them.”
Tesla Issues First EV-Related Climate Bond (AltEnergyStocks)
Tesla Motors Inc (NASDAQ:TSLA) inaugural bond issue has been, as you’d expect, electrifying (just had to say that). The US electric sports car manufacturer has just issued a 5 year, $600m convertible bond in a fundraising program which has seen it raise approximately $1bn through shares and convertible bonds. Coupon is 1.5-2%; conversion premium is 35%; bookrunners were JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), Morgan Stanley (NYSE:MS). Tesla Motors Inc (NASDAQ:TSLA) had planned to raise $450m through convertible bonds, but this was raised to $600m after strong demand from investors. That demand allowed Tesla Motors Inc (NASDAQ:TSLA) to drop what was going to be a 2-2.5% coupon down to 1.5%-2%. Investors were certainly bullish on the notes.
