Previously, this vehicle was scheduled for production in Albuquerque, New Mexico. However, the company decided that it would be highly advantageous to build manufacturing facilities in close proximity to the engineering and R&D centers in San Carlos, California. Mr. Schwarzenegger had made it clear that he wanted to keep Tesla manufacturing in this West coast state.
This is excellent news for California. State authorities recently approved a new program that exempts new Zero-Emission Vehicle manufacturers from paying sales and use tax on the purchase of manufacturing equipment and will encourage ZEV manufacturing in California. Tesla will also be eligible for at least $1 million in Employment Training Panel Workforce Development Funds to train employees.
Tesla's sedan, which is targeted for late 2010 production, will utilize the same leading electric powertrain as the famous Tesla roadster. The car will be both stylish and high-performing yet extremely functional. The exact location of the manufacturing facility will be decided soon.