Investing in the FutureIf Tesla Motors survives and thrives over the long term, the state of California is bound to benefit greatly. According to Elon Musk, the CEO, the company is ready to start repaying (ahead of schedule) its DOE loan and will soon be cash-flow positive. It currently employs 3,000 people, most in California, and want to add 500 more jobs to begin production of the Model X in 2014. Those are high-paying, advanced manufacturing jobs, and the R&D produces intellectual property that can be sold around the world, so it's no surprise that the government of California wants to encourage that kind of thing...
The California Energy Commission (CEC) has approved funding for more than $20 million in grants for innovative transportation projects, and Tesla Motors has been named as one of the main recipients:
Tesla Motors, Inc., will receive $10 million to purchase equipment for production of a new SUV/crossover vehicle, the all-electric Tesla Model X, at the company's facility in Fremont (Alameda County). Tesla is providing $50,200,000 in match funding for this project, which is expected to create more than 500 new manufacturing jobs in California. The project will leverage existing investments in Tesla's manufacturing and assembly line for the currently available Model S. As with the Model S platform on which it is based, Tesla expects the Model X to have a driving range of more than 250 miles on a single charge. It will be the first sport-utility crossover vehicle in California's electric vehicle market. To support this emerging plug-in electric vehicle market, the Energy Commission has invested more than $20 million to assist in the development of 5,000 charging stations statewide; and has awarded approximately $2 million to help local governments plan for more plug-in electric vehicles.
Zero Motorcycles will receive $1,815,123 to expand the company's full electric motorcycle production capacity. The company is based in Scotts Valley (Santa Cruz County). Zero Motorcycles previously implemented manufacturing in Asia, but has chosen to bring its manufacturing and assembly operations back to California. With this award, the company plans to quadruple its motorcycle production capacity and develop new prototype motorcycles.