It can help a lot of people to form a safe bridge between the shortfall, till they are more financially stable.

A Bridge loan doesn’t even require a monthly payment like most loans, that’s how flexible it is!

but hey, that’s my opinion, great blog tho, keep the posts coming!

Good work, keep it up.

The headline and conclusions of your article are very misleading and require clarification.

Long before the Detroit 3 starting seeking immediate emergency bridge loans to avoid bankruptcy (at least in the case of GM and Chrysler), $25B in loan guarantees had been appropriated in the Energy Bill passed in 2007 for the express purposes of helping auto manufacturers accelerate the development of tomorrow’s more efficient technologies.

Tesla has applied for loan guarantees under this program, and does not seek a “bailout.” In our opinion, the projects that we have submitted in our applications are ideally suited to the intent of the original bill’s provisions, as Tesla is in the business of producing only zero-emissions cars utilizing pure electric drivetrains.

In the meantime, the administration and some on capitol hill have suggested that these funds be redirected to the short term operating needs of the big 3 as a short term solution to immediate liquidity problems. As Diarmuid pointed out, we are opposed to that.

As for Tesla’s financing requirements, we previously announced that the $40 million in bridge financing should be more than enough to bring the company to cash flow positive in the two revenue producing businesses we currently have – the Roadster and our third party powertrain business. We have always said that accelerating our efforts with the Model S would require additional capital, and that we would seek that additional capital at a later date at the right terms.

This additional capital will likely be a mix of equity and debt, and if the government is offering low cost loan guarantees specifically to support the development of advanced vehicle technologies for the benefit of all, why shouldn’t Tesla utilize such a program?

Remember, although Tesla’s current product, the Roadster, carries a high price point, the advanced technology we have developed in the Roadster is a precursor to technologies that will appear in more and more cars at lower price points in the future. Getting there quicker is good for everybody, and we are committed to that goal.

Darryl Siry
SVP Sales, Marketing & Service
Tesla Motors