Tesla Motors will build a new automobile assembly facility in Albuquerque, N.M., creating 400 high wage jobs and a total capital investment of $35 million. Construction on the 150,000 square foot plant will begin in April 2007, at the latest.
Tesla Motors, based out of San Carlos, Calif., will use the plant to produce its “WhiteStar” car, a four door, five-passenger sports sedan that is 100 percent electric. The New Mexico plant will be the company’s first assembly facility in the U.S.
The plant will be built on the West Side of Albuquerque, at Cordera Mesa adjacent to the new Tempur-Pedic plant. The 400 new jobs will pay between $24,000 and $100,000 a year, plus excellent benefits and stock options.
New Mexico Gov. Bill Richardson has directed the state’s General Services Division, and other appropriate agencies, to investigate the purchase of 100 WhiteStar vehicles for the state fleet over a two-year period as a demonstration of the state’s commitment to clean energy.
Governor Richardson has also invited Tesla Motors Chairman Elon Musk and Tesla Motors CEO Martin Eberhard to work with the state to develop a package of legislation for the 2008 session to encourage the purchase of clean energy vehicles, including hybrid and electric vehicles.
Several states, including Arizona and California, were in talks with Tesla over locating the “WhiteStar” assembly plant.
“We wanted to be in a state that is as committed as Tesla is to developing clean energy and addressing global climate change,” said Elon Musk, Chairman of Tesla Motors. “We found that leadership in New Mexico.”
“The state was very responsive, helping us solve work force and logistical challenges,” said Martin Eberhard, CEO and Co-founder of Tesla Motors. “This is a state where we can look far into the future and for a partnership that will be good for Tesla and for the state of New Mexico.”
The first cars will roll off the assembly line in the fall of 2009, and Tesla will produce at least 10,000 cars each year. The vehicles will cost $50,000 for the standard model or $65,000 for a premium model with greater performance and range. Tesla begins production of its first vehicle, a zero-emission two seat Roadster, at a facility in England owned by Lotus Cars later this year.
Tesla’s corporate headquarters will continue to be located in San Carlos, Calif., where Tesla employs more than 120 people. The 400 jobs created by the new assembly facility will be new jobs and not transfers from the San Carlos location. Tesla recently announced the opening of an R&D facility in Rochester Hills, Mich., north of Detroit, where it expects to grow to a staff of 60 focused on design and engineering for the WhiteStar.
Tesla Motors will receive several incentives from the state, including the high wage job tax credit, the manufacturer’s investment tax credit and assistance from the Job Training Incentive Program.
In addition, Governor Richardson has committed $3.5 million in capital outlay from the 2007 legislative session, and another $3.5 million in capital outlay from the 2008 legislative session. These funds will go to Bernalillo County and be used for building and infrastructure investment related to the facility.
The state’s Economic Development Department worked closely with the Albuquerque Economic Development Department and the New Mexico Economic Development Partnership to close the deal with Tesla Motors.
The city of Albuquerque and Bernalillo County have agreed to assist with development of infrastructure to the site. First Community Bank has agreed to participate as a local lender. SunCal, which recently acquired approximately 57,000 acres on Albuquerque’s west side, pledged at no cost up to 75 acres of land abutting the initial site if the company undertakes a major expansion in the future.
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