Tesla reportedly snags some funding from GE (updated)
By Donald Melanson 
posted March 30th 2009 8:08PM
posted March 30th 2009 8:08PM
This isn't fully official just yet, but a recently leaked Car and Driver interview with Tesla CEO Elon Musk looks to have all but confirmed that the company received some funding from GE Capital as part of its current $40 million haul. While the exact amount GE has invested isn't clear, the company is apparently the second-largest investor in this round of financing, behind only Musk himself. As you're no doubt aware, this is on top of the $350 million in loans that Tesla is apparently close to securing from the U.S. government, which isn't exactly enough for it to rest easy given its ambitions, but is at least slightly encouraging for folks itching to get behind the wheel of a Model S. Musk even goes one step further in an attempt to assure potential customers in the interview, saying that "even in the worst case of an Armageddon scenario, I'll personally refund people [their money] if need be," adding quickly that he thinks there's "very little danger of that."
Update: According to Earth2Tech, this deal is off the table... and may have never been on it to begin with. GE Capital was apparently "closely watching" Tesla, but there had been no official deal. When the site reached out to Tesla, here's what they had to say:
Update 2: Here's a statement directly from Tesla:
Read - GE "Watching" Tesla, Does Not (Yet) Invest
Update: According to Earth2Tech, this deal is off the table... and may have never been on it to begin with. GE Capital was apparently "closely watching" Tesla, but there had been no official deal. When the site reached out to Tesla, here's what they had to say:
GE had committed to invest in Tesla and sent an e-mail confirming the investment, but GE backed out on the day it was supposed to wire funds to Tesla. The decision came after GE went into company-wide capital conservation mode.So, really, no kind of investment at all. If you were a Tesla shareholder, you'd probably be thinking about putting a tighter leash on Elon Musk right around now.
Update 2: Here's a statement directly from Tesla:
GE has not invested in Tesla.Read - GE Invests In Tesla
When Car & Driver interviewed Elon Musk a couple months ago, GE had committed to invest in Tesla and had sent an e-mail confirming the investment. But GE backed out on the day it was supposed to wire funds to Tesla. The decision came after GE went into company-wide capital conservation mode.
In any case, GE's investment allocation was taken up by venture capital firms Westly Group, Technology Partners and Draper Fisher Jurvetson, and Tesla closed the $40 million round without a problem earlier this year.
Read - GE "Watching" Tesla, Does Not (Yet) Invest
Lets just hope that Tesla doesn't take any ideas from GE.
You've got to be kidding. If Tesla was run half as well as GE, the Model S would have been on the road by now. They could use a little less glitz and little more management by cigar-chewing guys that know how to get stuff made.
Hey, for the size of Tesla and the fact that they actually have a performance all electric vehicle getting the range it gets on the road, they deserve a ton of credit.
A lot more credit than some other auto makers and the "electric" vehicles they are planning...
Wow, I work for ge capital and this place is run so well that every day I'm impressed at the lack of mis-information and other corporate bull crap.
I just don't understand why some people say what you just said. GE could probably help Tesla motors with their electronic motor manufacturing.....
@ OP - congrats on most ignorant comment of the week.
You mean like raising the price on Roadsters that customers had already committed to?
http://www.autoblog.com/2009/01/20/tesla-raises-prices-on-roadster-options-sparks-controversy-ang/
@Grewell912 People make comments like these because they've started listening and parroting anything said by either the President, Congress, or most of the media. We're currently in a "PEOPLE GOOD, BUSINESS BAD" era and will just need to wait it out.
GE's decision to drop funding was likely more researched and logical than anything that will go through Congress this year. Granted, they might have handled the PR a little better, but this looks like a fairly typical risk assessment action, especially when dealing with a credit-driven economic slowdown.
But you can't say that in a 5 second soundbite for reelection, so we'll continue to hear about how GE killed the electric car for the next ten years.
I honestly hope they become nation-wide because they'll be the FIRST American car maker that doesn't suck.
Cute. This is basically a gutpunch saying "GE can't hold to their deals" while still affirming that Tesla is on schedule.
I'd say well-played, but the way it was worded did seem a bit underhanded.
Wow, backing out on the day they were supposed to wire the funds? That is a pretty dickish move.
Agreed. You would think that a written confirmation of intent to wire funds would serve as something of a legal obligation. Guess not.
All I got out of the article is this: GE killed the electric car, *again* (puh-dum-pish)
That was GM. Not GE
every time i see a tesla article i get all depressed cuz i mistaken it for nvidia tegra news :(
Well look a company that is NOT "too big to fail", how refreshing!
Imho, Tesla is asking $5K a lot of sum, to deliver in 3 years! I would be happy to pre order, if it would be $1K, but in current state of economy, banks, companies auto, I wont risk my 5K!
I agree, once Tesla gets proper funding, they need to accelerate production and target an earlier delivery date. By 2011 competition will have arrived. Tesla needs to capitalize on their head start and put model S on American roads well before 2011.
How can GM afford to fund anything?
GE not GM
o, my bad, thanks for the correction . Makes sense then.
LOL, email.
In a few years GE will be kicking themselves while Westly Group, Technology Partners and Draper Fisher Jurvetson are laughing their way to the bank. Glad Tesla is getting the funds they need.
anyone with 40 million dollars here? This is the best time to grow your money before the fuel-cell vehicle comes out and ruin Tesla's machine.
What's with this email cr@p? If I was about to hand out $40 million, I'd be making a phone call.
I know having an IPO isn't all the rage that it used to be. Companies aren't seeing results like Google go from $80 to $800 on investor hype and too much money in the market looking for the next big thing. But I think they would do ok if they became a publicly traded company.
G.E. wanted to add a washer/dryer in the boot and tesla said no! :)
GM Rick, you deserved to be fired YOU SCHMUCK! Not only should we have had an EV-2, 3, 4 by now but you let those oil golf pals of yours drive, er ruin your business! At the HEIGHT of high gas prices you continued to run 10 to 1 commercials in favor of gas guzzlers. And now you come running to us for tax payer bail out, wondering what happened? Why not go to your oil pals first? Well, GOOD RIDDANCE!
PS Oh yea, thanks Prez BHO for finally stepping up and giving the smack down to an antiquated fool. Now the company and its employees can shed eight years of big oil motivated arrested development and retool for a greener, oil free automotive future. So, which Jurassic CEO is next on the hit parade?
I said to a friend that this could turn into the Urkel Presidency. Please prove me wrong!!
The fact that Tesla will offer me sedan that is 100% electric with a 480km range, I can say bye bye Chevy Volt.