Tesla Motors to open Bay Area plant

6/30/2008 Schwarzenegger has even made a personal order himself and could be getting one soon. The big news is that the Governor and State Treasurer are announcing plans to build a manufacturing plant for an electric sedan to the Bay Area. It appeared that Tesla motors was going to open their plant it in Mexico because of an incentive package worth about $7 million, but California has trumped the bid with $10 million in incentives. Tesla already has a $100,000 electric roadster on the market which is made in England. The fully electric five passenger multi-use sports sedan comes with a driving range of 225 miles on one charge. The estimated cost for this vehicle will be $60,000. Even with the tax break, State Treasurer Bill Lockyer says he sees it as a win for the California economy. "It's about 400 blue collar and white collar jobs that's anticipated. So, actually when you count that and payroll, the state makes out on the deal. Even though we have a partial help, ultimately, having them here is a great benefit to the state," says Lockyer. The state of California will buy about $100 million worth of manufacturing equipment and lease it to Tesla. Tesla can buy the equipment at the end of the lease term and won't have to pay sales tax, saving them $8.5 million and they would be eligible for a work training grant worth about $1 million. As for where the company will be, Tesla is not specific on the location, but they have two sites they are looking at.