Tesla gives up on San Jose move
Click on the Tesla Roadsters Hot Wheels for a high res gallery
Tesla warned in early December that without a $350 million loan from the federal government, the Model S sedan will be delayed and the company's planned move to San Jose, California to open a new HQ and manufacturing plant wouldn't move forward. Guess what? It's looking like it won't happen. The problem, as you might expect, is money, and the fact that Tesla couldn't raise enough money to finance the deal. Tesla spokesperson Rachel Konrad said that, "We abandoned that because the VC financing environment became so tight and difficult." One problem with the previously-selected location is that it's a greenfield site, where Tesla would build a totally new plant. With the low-interest loans that Tesla is applying for (about $400 million total, $250 million for the Model S plant and $150 million for a battery/powertrain facility), the government wants to see brownfield sites get developed. Konrad said that Tesla is looking to keep its headquarters in Silicon Valley and to search for a brownfield site where they can build the Model S.
Plug-in aren't dead in San Jose though. Recently, Coulomb Technologies installed EV charging stations in the city.
UPDATE: Tesla's Rachel Konrad told AutoblogGreen that Tesla wants to make it abundantly clear that, "This doesn't portend a delay for the Model S at all. The reason we are doing this is that we are extremely committed to a 2011 production date." Remember, the company said in October that it is applying for this DOE loan.
Gallery: First Drive: Tesla Roadster
[Source: KLIV, New Mexico Business Weekly]
Reader Comments (Page 1 of 1)
Nick 4:48PM (1/29/2009)
What's brownfield and greenfield???
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Chris M 5:22PM (1/29/2009)
"Greenfield" would refer to open land that had no environmental contamination, usually because it hasn't been used for industrial purposes that produce contamination.
"Brownfield" refers to a former industrial site with environmental contamination that, in most cases, must be cleaned up before it could be used.
Sebastian 4:23PM (1/29/2009)
Nick,
I've added links to the post to explain - basically, they're terms the EPA uses.
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why not the LS2LS7? 4:29PM (1/29/2009)
Tesla can't keep their HQ in Silicon Valley since Tesla's HQ is not in Silicon Valley. It's 30 miles from it, a bit less if you count Palo Alto as Silicon Valley (it isn't).
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slk23 5:57PM (1/29/2009)
I work at a software company in Palo Alto, just down the street from A9.com and several tech VC firms. Hewlett-Packard was started in a garage in Palo Alto and Stanford University is closely associated with the growth of Silicon Valley. But you say Palo Alto isn't part of Silicon Valley? I'd love to hear your reasoning for that one....
why not the LS2LS7? 7:54PM (1/29/2009)
Because it isn't in the same valley. It's not in the same county either.
Where's Hewlett Packard now? Not in Palo Alto! They haven't been there in a long time.
So, you work at a software company, eh? What's silicon about software?
Stanford was a huge reason for the growth of Silicon Valley, it almost certainly was the biggest. But the companies located down in Santa Clara county, where land was cheap (it was groves everywhere). And that's where Silicon Valley is.
slk23 8:21PM (1/29/2009)
Sorry, but your arguments are completely unconvincing, and ultimately pointless. Silicon Valley is not just about hardware.
It would be interesting to meet you sometime... we could argue about the wetness of water.
Doug 10:15PM (1/29/2009)
Interesting... So your argument basically is that Stanford and Palo Alto are not considered Silicon Valley because they are not in Santa Clara County? Quite an argument.
Btw, both Stanford and Palo Alto are in Santa Clara County. I know since I've been paying my taxes from Stanford for the past several years.
why not the LS2LS7? 11:41PM (1/29/2009)
Really? A person who showed skepticism wasn't convinced by my arguments. Astounding. I must get research money to investigate this!
jharlan 8:26PM (1/29/2009)
Because of various things that have happened, I doubt Tesla will be able to continue to exist without giving up bushels of equity to the venture capitalists. The question is, dilute the hell out of your equity or continue to bleed money in a deteriorating economy. Every minute they are not producing cars their odds of success darken.
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Tim 6:17PM (1/29/2009)
Boy those high tech guys really know how to blow through cash...! Maybe they should stop being so fancy and head to Toledo or Flint where they would get a "deal" on a brownfield site and get smart and save cash!
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whoami 6:58PM (1/29/2009)
Die! Tesla Die!
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whoami 6:58PM (1/29/2009)
Elon should stick to something that he actually knows how to do! What ever that is! It is obviously not running a car company. Hey Elon Karma sucks
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JDred 8:25PM (1/29/2009)
Tim nailed it. These guys are so concerned over their ideals and what they want rather than work with what the business enviroment can provide. As a result, Tesla is going to fail miserably unless they put their egos to the side and move to a more business friendly area of the country. And California, much less the Bay area isn't it!
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Tesla Ch. 11 8:27AM (1/30/2009)
I don't understand why Tesla doesn't go hit up Al "The Whore" Gore for money. Gore should fork over some of the money he's made off of his convenient lies and show he really believes in his hatred for the gas engine.
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