Tesla plans Silicon Valley electric car factory
Wed Sep 17, 2008 11:06am EDT Email | Print | Share| Reprints | Single Page | Recommend (0) [-] Text [+]
1 of 1Full SizeLOS ANGELES (Reuters) - California electric sports car-maker Tesla Motors is building a $250 million Silicon Valley plant to produce sedans that will roll onto U.S. highways in late 2010, the company said ahead of a Wednesday announcement.

The two-seater Tesla Roadster grabbed attention as a must-have toy -- Gov. Arnold Schwarzenegger is a customer -- with solid environmental credentials in the state that often sets national trends on clean air and energy.

San Jose Mayor Chuck Reed said the northern California town known for technology would be home to the factory and was rushing headlong toward so-called clean tech. "We've still got lots of other tech here, but the solar companies are growing," he said in an interview ahead of the factory announcement.

Tesla Chief Executive Ze'ev Drori in a separate interview said he expects manufacturing of the five-passenger, $60,000 Model S sedan to hit a rate of over 15,000 a year by the last quarter of 2011. Tesla will build the factory on its own.

"We have enough money," Drori said, adding that Tesla is a couple of months away from closing up to $100 million in private equity financing, and that the U.S. Department of Energy has approved $150 million in loan guarantees. The state of California also has offered significant tax breaks.

Other carmakers are planning zero-emission vehicles, and major manufacturers including General Motors Corp and Toyota Motor Corp are racing to make plug-in hybrids that can drive on battery power and then switch to gasoline when they need power.

"I am sure there will be competition," said Drori. "We hope there will be competition. Competition will accelerate demand."

(Reporting by Peter Henderson; Editing by Carol Bishopric)

 

I hope Tesla is a startup that makes it.

 

I drove by their dealer in LA last week. It's a very nice operation they have. This car has already developed a little cult status out here.

 

Yeah, that's smart - build your factory where wages are high and there's no existing pool of automotive talent. That being said, I wish them luck, and I look forward to seeing how they handle the economics of a $60,000 EV with a 200-mile range.

 

One drove by me in the parking lot last week.

The thing about the car that's unnerving and potentially dangerous to pedestrians is that it's completely silent. This is something that bothers me about these electric cars since I was almost picked off by steping infront of a soundless Toyota Prius in a parking garage a couple of months ago.

 

Yeah. imange being deaf.

 

I absolutely shocked San Jose won out over Modesto. It would have been a heck of a lot cheaper for Tesla to build their factory in the Central Valley.

 

Actually its probably less than 15 miles from the GM/Toyota Nummi plant.

 

How the heck does he fit inside that thing?!?!?!

Seriously though, I hope they do well - but knowing GM (with the resources it has to use an existing chassis and existing parts wherever possible) couldnt get a 40 mile EV under $40,000... Either they know something special, or this isnt going to quite turn out the way they are saying it will (but are claiming huge claims to attract investors).

 

GM's "EV" isn't an actual EV.

 

I see the same problem. If the Volt requires a $15-20K pack for 40 miles, what will the Whitestar need for 200+ miles? The math on that one is pretty easy - and a bit scary. Factor in the size of the motor required to meet Tesla's performance requirements, and this will not be a $60K car - at least not without a lot of government help.

 

The whole reason that Tesla is building the plant in California is due to the huge tax break the State is giving them. I don't have the original story in front of me, but I believe the State is giving them over $10M in equipment.