Mayor of Downey, CA: Deal with Tesla for Model S Factory "99.9% done"

tesla electric car model s photo

Photo: Tesla Motors
City Council Needs to Approve Memorandum of Understanding
Mario Guerra, the mayor of Downey, California, recently said that a deal between Tesla Motors and his city was "99.9% done". The only thing left to do is apparently for the city council to approve a memorandum of understanding, and this could be happening today (according to the Associated Press). So if all goes well, Tesla's factory for the upcoming Model S would be located very close to Los Angeles on a 80-acre plot (the city was involved in the deal because it owns 20 of those acres). The factory could employ about 1,200 people.
tesla electric car model s photo

Photo: Tesla Motors

From AP:

The company in June was approved for $465 million in loans from the U.S. Department of Energy to help build the Model S, which could travel as far as 300 miles on a charge. The car is slated to go into production by late 2011 with a base price of $57,400, although a federal tax credit for battery-powered cars will bring the cost to less than $50,000.

Tesla said close to 2,000 people have paid a refundable $5,000 fee to reserve one of the vehicles.

For more details about the Tesla Model S, see these posts: Tesla Model S Electric Car: 300 Miles Range, Seats 5+2, 0-60 MPH in 5.6 Seconds (Slideshow) and Tesla Model S to Have Kids! Electric Minivan, Crossover SUV, and Utility Van

There are also persistent rumors that Tesla Motors could soon do a IPO to raise more funds. So far the company has refused to comment, but if you are interested in getting some Tesla shares, better keep an eye open.

Via Downey Patriot, AP
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