Tesla Motors Inc. has secured a $2.3 billion loan from U.S. Bank and the National Aeronautics and Space Administration to help it fund its rocket program, the company said Thursday.
The deal, first reported by Bloomberg, gives Tesla the financing it needs to complete development of a vehicle that could launch to orbit.
The company said the loan comes as the agency prepares to consider SpaceX’s bid to compete with Boeing Co. in the U.K. market.
Tesla is working with UBS, Morgan Stanley and Goldman Sachs Group Inc. to secure the financing, according to a statement.
The loan is for $1.5 billion, according the statement.
Tesla said it would not disclose the total amount it received from the government.
The total loan amount is likely to be less than $1 billion.
The loan is expected to be fully repaid in three years, Tesla said.
The space launch vehicle is the centerpiece of Tesla’s plans to become a major player in space exploration.
SpaceX plans to begin flying rockets from Florida to the International Space Station next year.
S.-based company, which has already sold its Falcon 9 rocket to Japan’s Toei Animation Corp., has also sought funding from other private investors to make up the gap between the company’s plans and those of the U,S.