The big three automakers are clamoring for a piece of the hypothetical $25 billion auto-bailout fund. And newcomer Tesla wants a piece of that too, apparently. The startup auto-maker has requested $400 million in low or no-interest loans to fund two upcoming projects (likely their new $70k electric sedan and a low priced third car).
Tesla has raised nearly $200 million in capital since 2004, including a recent $40 million convertible debt financing. Prior to the debt round, Tesla unsuccessfully tried to raise $100 million in new capital.
But forget the private capital markets. You can’t beat cheap loans from the government. Of course, the entire bailout is far from certain at this point, so don’t count those chickens yet.