Tesla Motors announced plans to produce its Model S, the second car in the high performance, lithium-ion battery operated line for the San Carlos, California-based company, in San Jose.
The deal was a collaborative effort between the city and the State of California. Tesla will be leasing 89,000 acres in San Jose, building a 600,000-square-foot plant, and creating nearly 1,000 jobs.
In turn, San Jose will allow Tesla to work out of the facility rent-free for the first 10 years, then pay $1.5 million annually in rent, with a two percent yearly increase kicking in after year 20.
The state is offering to buy nearly $100 million in equipment needed for
manufacturing, and then (basically) allow Tesla to lease it, to own, and waive sales tax in the process.
Originally, New Mexico was in the running as the plant’s home, but their $7 million-dollar package was countered by California’s, which is worth somewhere in the neighborhood of $15 million.
San Jose and its mayor, Chuck Reed, are pushing to be leaders in green and clean tech sciences, as well as employment, and welcome the company to work closer to home, rather than anywhere else.
The Model S is set for production by 2010. It can travel 200 miles per charge, and will cost between $50,000 and $60,000. Tesla’s Roadster model, which sells for $109,000, goes from 0 to 60 mph in 3.9 seconds, and is on a one-year waiting list for purchase. The Roadster is assembled in Britain at a Lotus facility.
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