As part of the Climate Change Initiative passed by congress, the Department of Energy’s Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) will dispense a total of $8 Billion in loans to auto manufacturers. Generally, an advanced technology vehicle is considered one that operates at least 25% percent more efficiently than the baseline, which uses the 2009 model year to set the standard.

The first distributions from the ATVMLP were issued on June 23rd to Ford, Nissan, and Tesla. Tesla Motors, Inc., a six-year-old start-up in San Carlos, CA, will get $465 million. The first part of the loan will finance a plant for its Tesla Model S sedan, an all-electric car that will be half the price of the company’s current product, a luxury electric roadster. The second part of Tesla’s loan will be used to build a facility to manufacture battery packs and electric drivetrains for Tesla and its partners, such as Daimler.

The Tesla Model S will offer three battery pack options with a range of 160, 230, or 300 miles per charge. Charging will take 45 minutes using the quick-charge feature, or 5 minutes for a full battery swap. The battery swap feature essentially allows the Model S to replace a gasoline vehicle, enabling owners to take long road trips. Tesla claims a 5.6 second 0-60 mph time and 120 mph top speed, while being twice as efficient as the average hybrid vehicle. Estimated cost of a full recharge is about $4 USD. Pricing will begin at $49,900 including the $7,500 federal tax credit on battery-powered cars, and deliveries will begin in 2011.

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