Tesla Puts Model S Factory on Hold: Report
Posted in: electric car, electric vehicle, tesla, Today's Chili
Tesla can’t catch a break lately—even if it’s clear they deserve part of the blame themselves. The automaker has decided to put plans for a new factory in San Jose, previously announced last year for the Model S, on hold for now, according to Silicon Alley Insider.
It turns out Tesla couldn’t raise the necessary $100 million in venture capital in order to build the factory. “Instead, the company is hoping to get $400 million from the government as part of the Advanced Technology Vehicle Manufacturing Program,” the report said; of that, $250 million would go into the factory and $150 million into a separate powertrain facility.
The report speculates that the move may be a negotiating tactic on the part of Tesla to get the city of San Jose to come back with a sweeter offer. Tesla currently plans to have the Model S, a less expensive, four-door sedan intended to compliment the Tesla Roadster, on the road for 2011.
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