San Jose, Tesla Suffer Huge Setback Over Stalled Plant

[n2doc]

Tesla can't raise money, stalls in effort to build factory
By JOHN BOITNOTT

When Tesla first announced some months ago that it would place a brand new electric car factory in Northern San Jose, it was an exciting new feather in the cap of Mayor Chuck Reed.


He may have to take the cap off now.

The San Jose Business Times reported Thursday afternoon that the car company could not get the $100 million in venture capital it needed to build the plant.

Tesla's corporate headquarters is located in San Carlos on the Peninsula. The company builds its Roadster model in another state, but planned to build its new $60,000 sedan in San Jose. The Roadster costs more than $100,000.

The Business Journal article quoted the mayor's senior policy advisor as saying that the city was looking at other car companies for the same site on Zanker Road.

Company officials said they still planned on building the plant, they just did not know where yet.

The factory would have meant about 600 new jobs. It would have been located on Zanker Road near Highway 237.

more:

http://www.nbcbayarea.com/news/local/San-Jose-Tesla-Suffer-Huge-Setback-Over-Plant.html


Company response:

Though the headline is catchy, it's wrong. Tesla is reconsidering the San Jose Zanker Road site due to numerous concerns, including the government's preference for brownfield sites in awarding low-interest loans to automakers and suppliers. However, the company is already deep into negotiations on other sites and plans to make an announcement soon. The company is committed to the Model S and one of the reasons for reconsidering the site location is precisely to find the most cost-effective and expedient option to get the Model S to market in 2011. Rachel Konrad Tesla Motors Inc.

[TheWraith]

1. I hope what she says is true.

Tesla by all accounts makes a damn fine product, and I hope they pull off the Model S.