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Summary:

San Jose Mayor Chuck Reed must be happy. Tesla plans to announce Wednesday morning that it has decided to build its Model S electric sedan in a 600,000-square-foot plant in San Jose, Calif., on an 89-acre plot of land that will also include new company headquarters. […]

San Jose Mayor Chuck Reed must be happy. Tesla plans to announce Wednesday morning that it has decided to build its Model S electric sedan in a 600,000-square-foot plant in San Jose, Calif., on an 89-acre plot of land that will also include new company headquarters. The company says construction on the plant will begin in the summer of 2009.

Tesla announced in June that it would manufacture Model S in California, instead of New Mexico, which prompted speculation over which Northern California city would win the electric car maker’s business. Supposedly the short list included San Jose, South San Francisco and Vacaville.

But San Jose mayor Chuck Reed has been one of the most vocal champions of bringing green jobs and cleantech firms to San Jose, so we’re not surprised the car maker landed there. In front of a group of investors and entrepreneurs at the AlwaysOn GoingGreen conference this week, Reed said San Jose would make it easy for cleantech firms to open headquarters and manufacturing plants in the city, and asked companies what it would take to get their business there. Reed told the New York Times that the Tesla plant could create 1,000 green-collar manufacturing jobs.

Tesla’s CEO Ze’ev Drori told the WSJ that the company is raising $250 million in new financing — including new private financing led by Goldman Sachs and a loan guarantee from the Department of Energy — to get the plant built. The news comes the same month that Tesla said it has finished work on its final powertrain and is working with BorgWarner on a single-speed gearbox.

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  1. Tesla’s $250M manufacturing plant to park in San Jose [Cleantech] : VCsAndAngels – Venture Capital / VCs, Angel Investors, Startup News, Etc Wednesday, September 17, 2008

    [...] Tesla Motors plans to break ground on a 600,000-square foot factory on an 89-acre plot of land in San Jose, according to company officials. The electric car manufacturer is banking on $250 million in financing from Goldman Sachs and the Department of Energy to build the facility, on top of the $15 million or more in tax breaks California Governor Arnold Schwarzenegger offered to keep the company in California. Tesla is currently only producing 10 of the company’s signature roadster coupes a week in England and California, with a list price of $109,000. CEO Z’viv Drori says new plant will be initially capable of producing around 300 a week of the Model S sedan planned for introduction in 2010. How many “green collar” jobs will the project create? San Jose Mayor Chuck Reed told the New York Times 1,000, but the company suggests the factory will only employ 400-500 says the Wall Street Journal, with 250 current employees moving to the new headquarters once complete. (Photo by Emil Rensing) [...]

  2. Elon Musk Envisions Tesla Electric Car as Low as $20K « Earth2Tech Wednesday, September 17, 2008

    [...] Buzz Shortly after Tesla held a press conference Wednesday morning touting its $250 million planned plant in San Jose, Calif., Tesla chairman Elon Musk presented his vision of Tesla’s leadership role in the auto [...]

  3. Elon Musk Envisions Tesla Electric Car as Low as $20K [Earth2Tech - Start-Up News] | Internet Startups Wednesday, September 17, 2008

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  4. Elon Musk Envisions Tesla Electric Car as Low as $20K | Eco Friendly Mag Wednesday, September 17, 2008

    [...] after Tesla held a press conference Wednesday morning touting its $250 million planned plant in San Jose, Calif., Tesla chairman Elon Musk presented his vision of Tesla’s leadership role in the auto [...]

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    [...] seen a flurry of new electric car assembly plant announcements recently. The big news this week was Tesla’s decision to build a $250 million manufacturing plant and corporate headquarters in San…where it will build its new Model S electric sedan. Meanwhile, electric car vet ZAP has started [...]

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    [...] seen a flurry of new electric car assembly plant announcements recently. The big news this week was Tesla’s decision to build a $250 million manufacturing plant and corporate headquarters in San…where it will build its new Model S electric sedan. Meanwhile, electric car vet ZAP has started [...]

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  9. Earth2Tech Week in Review « Earth2Tech Saturday, September 20, 2008

    [...] Tesla to Build the “Model S” Electric Sedan in San Jose: San Jose Mayor Chuck Reed must be happy. Tesla announced Wednesday that it has decided to build its Model S electric sedan in a 600,000-square-foot plant in San Jose, Calif., on an 89-acre plot of land that will also include new company headquarters. [...]

  10. Earth2Tech Week in Review [Earth2Tech - Start-Up News] | Internet Startups Saturday, September 20, 2008

    [...] Tesla to Build the “Model S” Electric Sedan in San Jose: San Jose Mayor Chuck Reed must be happy. Tesla announced Wednesday that it has decided to build its Model S electric sedan in a 600,000-square-foot plant in San Jose, Calif., on an 89-acre plot of land that will also include new company headquarters. [...]

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