Department of Energy Awards Tesla

Things are looking good over at Tesla Motors. After securing a nearly half-billion dollar low-cost loan from the federal Energy Department, the electric car maker can move forward with plans for its new manufacturing plant.

The new facility is set to produce the Tesla S, a less sporty, more affordable everyday electric car. Along with the creation of about 1600 jobs for the beleaguered auto industry, the federal loan will also be a boon for the local economy in Palo Alto, CA.

Tesla CEO Elon Musk hopes to be churning out 20,000 S models by the end of 2013. Slated to have a sticker price of about $50K after a federal tax credit, expect to see the first round of Tesla S models hitting the streets in the next 2 years.

Source: Detroit News