Tesla Motors Picks San Jose Site
America’s Little Electric Car Company To Build A New Factory In California
Tesla Motors has snapped up 89 acres of land in San Jose, California where the company expects to break ground for a new 600,000 square foot factory and company headquarters. The site will produce 
Tesla’s newest vehicle — dubbed the “S Model” — a sedan that is expected to retail in the neighborhood of $60,000 when it goes into production in 2010 according to the Silicon Valley/San Jose Business Journal.
Founded in California in 2003, Tesla Motors had said previously that they were looking at a site in New Mexico to build their latest model, but decided to stay in California when the state offered a ten year rent abatement and promised to waive state sales tax for California residents who buy the company’s new sedan. As many as 1,000 new jobs combined are expected to be created for the factory and corporate headquarters.
First A Roadster
Earlier this year, Tesla Motors began building the Tesla Roadster, an all-electric model that is assembled on a Lotus assembly line in England. That car can travel as far as 244 miles on a single charge and propel occupants from 0 to 60 in just 3.9 seconds. Tesla is one of the first automakers to use a lithium-ion battery in a production car, the same type of battery that General Motors will be using for the Chevrolet Volt when it comes to market late in 2010.
Now A Sedan
This past June I mentioned that the state of California was wooing Tesla to build the Whitestar (or White Star) in California, by offering an incentive package better than what the company was to receive from the state of New Mexico. At that time I mentioned that the sedan would seat four five passengers, but little else is known about the car.
Supposedly, Tesla Motors will position the car to compete against select BMW, Audi, and Mercedes models, but little else has been said about the sedan. Talk of extending the sedan’s range by incorporating a small, gas engine have also surfaced, but nothing definitive has been said.
Electric Tesla Whitestar Is California Bound
You probably can’t afford the Tesla Roadster and most motorists won’t be able to afford the Tesla Whitestar either, but that isn’t stopping upstart Tesla Motors from going ahead with its plans to expand its model line 
up. News reports are leaking out today that California Governor Arnold Schwarzenegger plans to announce that the Golden State has beat out New Mexico in a battle to win Tesla sedan production for his state.
Schwarzenegger didn’t have to dangle a tremendous amount of money to win the contest, reportedly $9 million in incentives, which is about $2 million more than what New Mexico was offering Tesla. The monies will come from a fund California has in place to help companies purchase manufacturing equipment and through a grant to train new employees. In Tesla’s case, California would furnish the purchase of $100 million of equipment and at the end of the lease term Tesla Motors would have the option to buy the equipment without paying sales tax.
The vehicle to be built, code-named the Model S, is expected to be a four door sedan with a retail cost of about $60,000, some $40,000 less than the Roadster, a model which went on sale earlier this year. Production for the new sedan, which will hold four adults, should begin in late 2010 about the same time General Motors rolls out its own electric car, the Chevy Volt.
(Source: San Francisco Chronicle)
Its A Wrap; Year Half Way Over
Filed under: Cadillac, Dodge, Fisker, GMC, Tesla, Toyota, Volkswagen
Today marks the end of June, the halfway point for the year. And what a year it has been!
Gas prices are the topic of many conversations and the news across the US auto industry is glum. Everyone is down save for a few automakers (Honda) whose fleet is dominated by fuel efficient vehicles. The prospects for the second half of the year aren’t particularly bright, strongly suggesting that when 2008 has been put in the history books, it’ll be a watershed moment for car manufacturers.
Short of wringing our hands and wishing things weren’t so, the pressure GM, Ford, and Chrysler are facing may be a good thing for the long term. Additional smaller models are being planned; new technologies that increase fuel economy, power, while reducing emissions are now being used; and in the case of GM and Ford their fleet quality has risen sharply. Chrysler, on the other hand, being the smallest of the three is a concern — the company’s long term may very well be at risk.
Some of the tops stories on The Auto Writer this year include the following:
Tesla Alleges Fisker Design Thievery — Yes, the Tesla Roadster is finally out and fresh on its heels may be the Fisker Karma, another electric beauty. Tesla, however, is having some heartburn over the Fisker design, alleging all kinds of things about Fisker. The last bit of news I’ve heard about this is that Fisker wants to go to arbitration to settle Tesla’s suit. Hmmm….
Is The Dodge Magnum A Lemon — I actually wrote this article for a lawyer in 2005 or 2006 who then decided to stiff me when he changed the terms of our agreement. I kept the article, but decided to publish it in 2007 because, well, it is an interesting subject. Apparently, my readers think so too because it is also the most commented on article ever for this blog. Not just simple comments, mind you, but details about why their Magnums are problem plagued. To be fair, I like the Magnum’s looks and I drive a Neon myself, but if there are problems with a car, then sharing that information with others can be beneficial.
Cadillac Showcases One New Model & Two Concepts — You know that I don’t get out all that much when I point to the highlight of the year as being my trip to Detroit in mid-January. I visited the NAIAS as the guest of GM (a wonderful host, btw) and was able to see up close and personal several new or proposed models including the CTS coupe. Many of my January articles focused on the Detroit show giving me a clearer picture of where the industry is and where it is headed.
Which Brand Has The Best Resale Value? — Quite a few people were surprised to learn that Volkswagen finished on top, given its quality problems over the years. I was surprised too, but I attribute some of it doing so well, because their retail prices are competitive. Now, with all small cars actually increasing in value, buying a VW could be a good move. Maybe not.
Watch Group Alleges Widespread Toyota Labor Abuse — Toyota is the new #1, but the bigger they are the harder they fall! One labor rights group recently shined the light on Toyota’s labor practices and the news is pretty sad. True, many of the companies in question are suppliers, but Toyota has to be aware that some of these practices (i.e., low wages, long hours, miserable working conditions) are going on. If not, then Toyota has some serious ’splaining to do. Come to think of it, they’ll have to explain what they plan to do no matter what.
The Rising Value of Your Fuel Efficient Car — Do you own a ‘94 Tercel? How about a ‘01 Neon or an ‘04 Civic? The value of your car has likely increased in the face of $4 gasoline. Before you take your clunker to the junk yard, consider making the repairs necessary to keep your 35+ mpg car on the road — or sell it for a mint!
Lastly, thanks to everyone who has been reading this blog and contributing comments to add value to the discussion. I plan on keeping hard at it for the rest of the year, so please snag a feed to track what subjects I am covering.
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