Electric Car Maker Tesla Motors Seeking Multi-Million Dollar Federal Loan

December 10, 2008 8:08 a.m. EST

Miami, FL (AHN) - The maker of a $109,000 electric sports car is taking a page from the Big Three Detroit automakers and is asking the federal government for a multi-million dollar loan.

The chief executive officer of Tesla Motor Inc., Elon Musk, said he is seeking $350 million in low-interest government loans so his company can develop its $57,499 electric four-door sedan.

Without the aid, Musk said he will not move forward with a $250-million manufacturing plant in San Jose, Calif. to build the sedans.

Tesla sold 100 of its electric sports cars, but cut 24 percent of its workforce in October because of the economic crisis, Bloomberg reported.

Musk said if the government gives him the loan, it will not be used to build the Tesla sports car. He said the money will only be used on "mass market cars" like the sedan.

He said the goal of his company is to make a mass-produced electric car "as soon as possible," Greentech Media reported.