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(CNN)   Tesla pays back half a billion dollar federal loan a decade before it's due   (money.cnn.com) divider line 270
    More: Hero, Fisker, CEO Elon Musk, Model S  
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11392 clicks; posted to Main » on 23 May 2013 at 2:11 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-05-22 09:22:54 PM
1) Get federal money to create a luxury goods product
2) Use federal money to entice buyers with tax credits and incentives
3) Profit
4) Pay back federal monies ahead of schedule

did they pay the early payment fees? If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.
 
2013-05-22 09:29:52 PM
Man, zombie debt is getting ridiculous these days..

//on the upside, you really can't put a price on a 200ft-high death ray tower..
 
2013-05-22 09:37:30 PM
I have all of their records.
 
2013-05-22 09:53:12 PM

Mangoose: did they pay the early payment fees? If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.


This tells us something about your credit rating. I've owned three different homes and never once had to take out a mortgage loan with a prepayment penalty.
 
2013-05-22 09:55:07 PM

Mangoose: did they pay the early payment fees? If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.


The federal government is not a greedy bank. They are trying to foster something the FREE MARKET was unwilling to do. Seems like, with Musk at the helm, they hit 1 for 3. Not bad in the VC world.

Want to b*tch some more, or applaud a great company, with great products employing thousands of Americans all with help from "government bureaucrats"?
 
2013-05-23 12:15:50 AM
This is Obama's Electric Boogaloo 2.
 
2013-05-23 12:16:59 AM
I'm shocked
 
2013-05-23 12:21:57 AM

Mangoose: did they pay the early payment fees? If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.


Holy shiat. Do you have like a 400 credit rating or something? Nothing I've EVER taken out a loan on has ever had an early payment penalty. And that includes my current home loan.
 
2013-05-23 12:41:25 AM

Fark Me To Tears: Mangoose: did they pay the early payment fees? If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.

This tells us something about your credit rating. I've owned three different homes and never once had to take out a mortgage loan with a prepayment penalty.


PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL
 
2013-05-23 12:53:24 AM
Obviously, this is terrible, because Tesla cost the Fed a ton in interest payments. Truly, Obama is a monster for helping the US invest in such shifty business folks who couldn't even keep an agreement to the taxpayers. The bootstrappy pay all the fees, in full, all the time...
 
2013-05-23 01:02:19 AM
That's really impressive.
And for having a rocky start, they've really impressed me with their cars.
At such time as I can afford an $80k fun-car (that day IS coming sooner than later), that will be the one I get.
 
2013-05-23 01:07:56 AM
want a model s sedan
Want
Want bad
 
2013-05-23 01:10:22 AM
Profit from Tesla stock paid off our Model S and will let us buy a Model X when/if it comes out.
 
2013-05-23 01:11:10 AM

namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL


It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.
 
2013-05-23 02:00:22 AM
I thought Tesla was dead.
 
2013-05-23 02:06:29 AM
Musk has that much cash in his sock drawer.
 
2013-05-23 02:13:27 AM
If they were able to pay the money back a decade in advance, why did they take it in the first place?  Lol.  I hope Taxbongo likes coffee, because this sounds like another scandal brewing.
 
2013-05-23 02:14:52 AM

hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.


Holy crap...that's a thing. How the fark is that even legal?
 
2013-05-23 02:15:20 AM
I thought Tesla was dead how could this be?
 
2013-05-23 02:15:25 AM

teto85: Profit from Tesla stock paid off our Model S and will let us buy a Model X when/if it comes out.


And this folks is what you do if you really believe in a company. Buying product is good, buying product and stock even better. (I believed in the iPod).
 
2013-05-23 02:15:34 AM

Mike_LowELL: If they were able to pay the money back a decade in advance, why did they take it in the first place?  Lol.  I hope Taxbongo likes coffee, because this sounds like another scandal brewing.


lol
 
2013-05-23 02:15:47 AM

Mangoose: 1) Get federal money to create a luxury goods product
2) Use federal money to entice buyers with tax credits and incentives
3) Profit
4) Pay back federal monies ahead of schedule

did they pay the early payment fees? If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.


So in other words, you want to hate on them, no matter what.

Got it.

Mike_LowELL: If they were able to pay the money back a decade in advance, why did they take it in the first place?  Lol.  I hope Taxbongo likes coffee, because this sounds like another scandal brewing.


Well, you need money to get enough production going to sell your product. Did you flunk 3rd grade math, or something? The money wasn't going to get paid for the cars before they even existed.
 
2013-05-23 02:16:02 AM
WTF a hair band from the 80's need a half billion dollar loan anyway??
 
2013-05-23 02:16:34 AM

carnifex2005: teto85: Profit from Tesla stock paid off our Model S and will let us buy a Model X when/if it comes out.

And this folks is what you do if you really believe in a company. Buying product is good, buying product and stock even better. (I believed in the iPod).


Having the money laying around to invest: best of all.
 
2013-05-23 02:16:36 AM

hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.


It's illegal in some states, and this is honestly the first time I've ever heard of it being applied to a mortgage.
 
2013-05-23 02:17:19 AM
[SPIFFY] I could see, but [HERO]?    really?
 
2013-05-23 02:18:39 AM

Mike_LowELL: If they were able to pay the money back a decade in advance, why did they take it in the first place?  Lol.  I hope Taxbongo likes coffee, because this sounds like another scandal brewing.


Three years overdue, but Favorited.
 
2013-05-23 02:19:04 AM

fredbox: [SPIFFY] I could see, but [HERO]?    really?


Rubbing it in the faces of college graduates across the country
 
2013-05-23 02:19:13 AM

Mike_LowELL: If they were able to pay the money back a decade in advance, why did they take it in the first place?  Lol.  I hope Taxbongo likes coffee, because this sounds like another scandal brewing.


No scandal but they were able to pay it back in full by diluting their stock. There are always consequences of that either by pissing off investors or causing an early deflation of an overvalued stock -- which Tesla looks to be currently.
 
2013-05-23 02:19:22 AM

SpdrJay: WTF a hair band from the 80's need a half billion dollar loan anyway??


You're right. I bet there's a Warrant out for these guys.
 
2013-05-23 02:19:23 AM

fredbox: [SPIFFY] I could see, but [HERO]?    really?


They could have kept that low interest debt on the books for years and reinvested that money elsewhere. Paying it off early was very savvy PR wise.
 
2013-05-23 02:19:29 AM

Mangoose: If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.


Setting aside the issue of prepayment fees, bank makes money from interest payments. The government makes money from taxes. Any improvements to property made by Tesla, such as new production facilities, will be assessed and used for property taxes. People employed by Tesla will pay income tax. Corporate income is taxed. Dividends paid to shareholders are taxed.

The government doesn't have to make money from interest - they can make a good return on investment without it.
 
2013-05-23 02:19:44 AM

hardinparamedic: Mangoose: did they pay the early payment fees? If you take out a 30 year mortgage on a home and pay it in 10, you will be assessed a penalty. Because a bank wants the profit.

Holy shiat. Do you have like a 400 credit rating or something? Nothing I've EVER taken out a loan on has ever had an early payment penalty. And that includes my current home loan.


Yeah... I sat down with a mortgage guy and discussed this in detail years ago. I knew that paying a half payment every two weeks, instead of a single payment once a month, ended up paying off your loan 5-6 years early. I decided to find out where that benefit died, just out of curiosity. I specifically asked about early payment penalties, and he said that I wouldn't be slapped with any...

For the record; I think either a double or a 2.5x payment schedule is where you end up not really getting any kind of benefit.
 
2013-05-23 02:20:31 AM
Isn't most of their worth in their patents and not how many cars they can produce? So they are the second or third  generation of electric car manufacturing technology.
 
2013-05-23 02:22:14 AM

imgod2u: Mike_LowELL: If they were able to pay the money back a decade in advance, why did they take it in the first place?  Lol.  I hope Taxbongo likes coffee, because this sounds like another scandal brewing.

No scandal but they were able to pay it back in full by diluting their stock. There are always consequences of that either by pissing off investors or causing an early deflation of an overvalued stock -- which Tesla looks to be currently.


All stock is a risk of course but if they are able to make the Holy Grail of Electric Cars (30k car that can last 200 miles on a charge) their royalty payments from every other car manufacturer using that technology will turn them into the 4th major car company.
 
2013-05-23 02:22:34 AM

Fark Me To Tears: This tells us something about your credit rating. I've owned three different homes and never once had to take out a mortgage loan with a prepayment penalty.


My mortgage (Canada) lets me prepay up to 20% of the original balance per year but there would be a penalty beyond that. It's a normal thing here, nothing to do with a poor credit rating.
 
2013-05-23 02:22:50 AM

Bumblefark: hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.

Holy crap...that's a thing. How the fark is that even legal?


Same way casinoes and lotteries are. The people want them, vote for them, and will riot in the streets if you try to take them away, all because math is hard and they only care about easy.

/good on Tesla for showing rare fiscal responsibility
//still won't buy an electric car
///there are other, better ways to invest in companies that depend on hype to move their products
 
2013-05-23 02:24:41 AM

Bumblefark: hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.

Holy crap...that's a thing. How the fark is that even legal?


Its also done to encourage you to stick with your mortgage and not switch when the rates change. At least that's what I understand up here in Canada. Doesn't necessarily have anything to do with the credit history of the individual.

Its more about stability for the mortgage company than consumer choice.
 
2013-05-23 02:25:51 AM

fredbox: [SPIFFY] I could see, but [HERO]?    really?


Came to say this, Hero tag seems excessive.
 
2013-05-23 02:27:11 AM

Rain-Monkey: want a model s sedan
Want
Want bad


I'm totally getting one this year if putting a surfboard rack on top doesn't drag it's range down by half.
 
2013-05-23 02:27:18 AM
FTA : "I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the [loan] program, and particularly the American taxpayer from whom these funds originate," Tesla co-founder and CEO Elon Musk said in a statement. "I hope we did you proud."

That's a nice shout out to the 1%.
 
2013-05-23 02:27:31 AM

carnifex2005: imgod2u: Mike_LowELL: If they were able to pay the money back a decade in advance, why did they take it in the first place?  Lol.  I hope Taxbongo likes coffee, because this sounds like another scandal brewing.

No scandal but they were able to pay it back in full by diluting their stock. There are always consequences of that either by pissing off investors or causing an early deflation of an overvalued stock -- which Tesla looks to be currently.

All stock is a risk of course but if they are able to make the Holy Grail of Electric Cars (30k car that can last 200 miles on a charge) their royalty payments from every other car manufacturer using that technology will turn them into the 4th major car company.


Not in North carolacky it wont. Herp de derp dederp.
 
2013-05-23 02:29:33 AM

carnifex2005: All stock is a risk of course but if they are able to make the Holy Grail of Electric Cars (30k car that can last 200 miles on a charge) their royalty payments from every other car manufacturer using that technology will turn them into the 4th major car company


Fun fact, at Tesla's current stock value, they're worth more than Fiat or Chrysler. While not there in volume, in terms of worth, they are the 4th major US car company.
 
2013-05-23 02:29:58 AM

breadman: Bumblefark: hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.

Holy crap...that's a thing. How the fark is that even legal?

Its also done to encourage you to stick with your mortgage and not switch when the rates change. At least that's what I understand up here in Canada. Doesn't necessarily have anything to do with the credit history of the individual.

Its more about stability for the mortgage company than consumer choice.


It's because the mortgage companies then bundle up those loans and sell them off as a package.  If you pay off early, the package they sold is not worth as much and they eat the difference, which they dislike doing.
 
2013-05-23 02:30:00 AM

hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.


I remember that part of the CDO model assumed that the lifespan of the pools of mortgages they were playing with would be less than five years on average as people refinanced their houses to take out equity or get better rates. If mortgages were being made with prepayment booby traps it would have taken the wind out of their sails.

Of course, the model was wrong, but prepayment on a 4-6% mortgage would just make that money available to relend. I actually could see where a 12% mortgage would probably have someone getting a major commission to where it might take a decade to level out. I was briefly looking at selling whole term life and the commissions were basically "first year to the agent" and the cash value returning to full size after a decade.
 
2013-05-23 02:30:38 AM

Yes this is dog: hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.

It's illegal in some states, and this is honestly the first time I've ever heard of it being applied to a mortgage.


It's state by state, but some lenders say they never include a penalty even if allowed, and some kinds of mortgages, like FHA, VA, USDA, are forbidden by the feds to have penalties even if that particular state allows it.
 
2013-05-23 02:31:16 AM
I was going to make a witty reference to one of Tesla's songs until I realized I had them confused with Extreme.

/ was there any difference?
 
2013-05-23 02:31:24 AM

wildcardjack: whole term life


farking 1:30am... I should have been in bed an hour ago.
 
2013-05-23 02:32:18 AM
Thanks, Obama!
 
2013-05-23 02:33:00 AM

breadman: Bumblefark: hardinparamedic: namatad: PAYED off my house this jan.
what the hell is a prepayment penalty and what kind of a moran would get a loan with one???
LOL

It's a condition that's typically tacked onto loans that have a high risk - i.e. someone with a low credit score or no credit, or someone who has a history of default or bankruptcy..

It's really, really common to see in high interest "payday" or micro-loans.

Holy crap...that's a thing. How the fark is that even legal?

Its also done to encourage you to stick with your mortgage and not switch when the rates change. At least that's what I understand up here in Canada. Doesn't necessarily have anything to do with the credit history of the individual.

Its more about stability for the mortgage company than consumer choice.


Pretty much this. Banks depend on reliable financial transactions, not large ones. It's like the story of the farmer that drops a thousand bushels of fresh produce on a local food bank, and ends up causing a city-wide riot because the food bank couldn't distribute such a large quantity of food "fairly," in the opinion of the homeless people it was trying to help
 
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