Tesla's $465 million fed loan for Model S EV plant secured

Expected in 24 - 30 months

Today Tesla secured its $465 million federal loan to produce the Model S electric car.

By the end of 2013, Tesla hopes to begin producing about 20,000 Model S electric sedans per year. With around 300 miles of EV range, the Model S is expected to cost about $50,000 after a $7500 tax credit.

Tesla also expects the loan to lead to the creation of at least 1,600 jobs.

What's up with Tesla?

Great looking car

I don't know what to make of Tesla. While I've always respected Elon Musk's endeavor into electric vehicles, I've never fully bought into Tesla's business model, at least as far as EVs for the masses.

Today's press conference, however, was weird.

"What we really wanted to show the car industry is that it is possible to create a compelling electric car at a compelling price," Musk said. "We hope the industry will follow our lead?"

You mean like the Chevy Volt, which Musk claimed was too cost-ineffective, yet is cheaper than the Model S? Or, how about the numerous EVs expected by numerous automakers due out exactly when, or even before, Tesla starts actually producing these vehicles?

Certainly, the Roadster was a shot off the bow of the Big 3, but not the Model S. Quite honestly, the auto industry is going to quickly outsell the Model S as soon as Tesla actually starts selling this EV.

While I still commend Musk and Tesla on this incredible achievement, I can't help but feel this press event was about Fed funding more than anything, which I'll bet will be quickly followed by an IPO - not that there is anything wrong with that. Still....