September 17, 2008

Telsa Motors to Build Plant in California

Green-tech car company Tesla Motors Inc. said Wednesday it would construct a $250 million plant in San Jose, Calif., to build zero-emission luxury sedans.

Construction on the site would begin in summer of 2009, with the finished facility eventually adding 1,000 jobs to the area, a company statement said.

In addition, Tesla plans to move its headquarters and research teams from San Carlos, Calif., to the 89-acre property. It chose the San Jose site in part "to allow us to proceed with minimum disruptions and virtually no dislocations," said Tesla President and Chief Executive Officer Ze'ev Drori in a statement.

Tesla said it had no plans to move production of its all-electric, two-seat Roadster to the U.S. Currently, it is produced in Hethel, England.

The San Jose plant will produce the Model S, a five-passenger luxury sedan powered by a lithium-ion battery pack.

The car is projected to run about 240 miles with one charge and sell for about $60,000.

Tesla expects the first models to be ready for the market in late 2010.