Tesla announced this week that they plan on replaying a loan of approximately $465 million back to the U.S. by 2017, five years ahead of schedule according to Bloomberg News.
The new plan was revealed in the automakers annual report that detailed an approval by the government to amend terms of the loan agreements that will allow Tesla to repay the U.S. by Dec. 2017.
In 2015, the Palo Alto, C.A. based company will start making "accelerated payments" from excess free cash flow according to Deepak Ahuja, the company's chief financial officer.
"Any remaining balance that's there at the end of 2017 we'll pay off as a balloon payment," Ahuja said according to Bloomberg News.
Click here to see the company's annual report.
Led by multi-billionaire Elon Musk, the company has a strict goal of becoming profitable this quarter according to MSNBC. The company expects deliveries of vehicles to rise to a record 20,000 vehicles by the end of this year.
The original terms of the agreement stated that Tesla had to return the money by 2022, 10 years after the U.S. government agreed to lend the company the money. This past Sept. however, the company stated they were working with the Energy Department on a "modified repayment schedule.
Amended terms of the loan agreement were registered on Dec. 20 and then again on Mar. 1.
The money Tesla borrowed was used to fund Zero-Emission Vehicle production, also known as EVs. California environmental rules dictate that "large automakers" have to sell a certain number of electric and plug-in vehicles per state annually according to Bloomberg.
"The value of those warrants is very substantial," Ahuja said according to Bloomberg. "The terms of the original loan had a very good incentive for us to pay off the loan early."
Tesla reportedly sold 2,650 Model S sedans last year which go for approximately $60,000 to $100,000 before added fees according to a company press release.
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