Tesla and the Department Of Energy recently announced that the California Electric Vehicle maker will get two loans totaling $465 million from the Advanced Technology Vehicle Manufacturing program (ATVMP). $100 million will be used to set up an electric powertrain manufacturing plant to provide components such as motors and battery packs to other automakers.

The majority of the money, $365 million, is allocated for production engineering and a factory to build the Model S. Both factories are expected to be built in existing facilities and Tesla is in negotiations for locations in California. Tesla hopes to start production of the sedan by the end of 2011.