Regardless of what Governor Arnold Schwarzenegger may or may not be saying between the lines to California assemblyman Tom Ammiano, his message is clear when it comes to Tesla Motors: a break on the sales tax on $320 million worth of equipment has enticed Tesla to build its new sedan plant within the state's borders.
The exact location for the plant isn't yet known, but the cities of Long Beach and Downey are both front runners. This would put the sedan plant--where Tesla will build its 2012 Model S Sedan--near the Los Angeles area, rather than midway up the coast where its current Menlo Park offices are located.
About $238 million will be...
Regardless of what Governor Arnold Schwarzenegger may or may not be saying between the lines to California assemblyman Tom Ammiano, his message is clear when it comes to Tesla Motors: a break on the sales tax on $320 million worth of equipment has enticed Tesla to build its new sedan plant within the state's borders. The exact location for the plant isn't yet known, but the cities of Long Beach and Downey are both front runners. This would put the sedan plant--where Tesla will build its 2012 Model S Sedan--near the Los Angeles area, rather than midway up the coast where its current Menlo Park offices are located. About $238 million will be spent on the plant itself, while another $59 million will go to upgrade the existing Palo Alto powertrain production facility. All of these funds come from the U.S. Department of Energy loan secured earlier this year, worth $465 million. The 2012 Tesla Model S sedan, in addition to being seriously good-looking, is expected to be one of the first all-electric sedans to market. It will also carry forward some of the perform legacy built by the Tesla Roadster, with an expected 0-60 mph time of 5.5 seconds in the running with many gasoline sports sedans. In some configurations the sedan will also be capable of a 300 to 600-mile range. Starting price for the Model S will be $57,500, though a $7,500 tax credit will help bring its total cost down to about $50,000. It's expected to go into production by mid-to-late 2011, reaching retail sale by early 2012. [Reuters] Read More

