Tesla Planning New Powertrain Facility, Corporate Headquarters in Palo Alto Page 2

By Robert Scardino

Robert Scardino

Author BIO

I'm a writer stuck in an engineer's brain with a debilitating case of autoholism. While studying at the University of Illinois I discovered my... More

LATEST ARTICLE
Toyota Dealers to Give Away 2010 Prius at Chicago Auto Show
As widely reported yesterday, Toyota has suspended sales of 8 models due to a faulty accelerator... Read More

• N/ALEADERBOARD RANK
• 232ARTICLES CONTRIBUTED
• 9COMMENTS POSTED

1,356 views Aug 18, 2009

New Tesla Facility in Palo Alto

Tesla sells power train components to other automakers so they can get affordable EVs to customers faster. Tesla is already producing EV components for Germany’s Daimler, maker of Mercedes. The company will build the highly anticipated electric version of the Smart city car using Tesla battery packs and chargers.

Tesla, which achieved overall corporate profitability in July thanks to the popularity of the Roadster sports car, expects to announce other powertrain deals in the upcoming months. Tesla has already delivered nearly 700 Roadsters to customers.

“Tesla is rapidly recruiting new employees, and this fabulous working environment and proximity to Stanford University will give us excellent access to top engineering talent,” said JB Straubel, Tesla’s Chief Technology Officer and leader of the powertrain group. Straubel received a bachelor's degree in energy systems engineering and a master's in energy engineering, both from Stanford.

Tesla is in site negotiations for an assembly plant for the all-electric Model S. The sedan will be produced at a separate assembly plant in California -- not at the Palo Alto site.

Tesla will renovate the Deer Creek Road facility to the highest environmental standards, incorporating sustainable building practices certified by the Leadership in Energy and Environmental Design program. Construction is expected to begin in early fall. Tesla is planning to relocate employees from its offices in San Carlos in several phases over the upcoming months.

Financing will come in part from loans from the U.S. Department of Energy. In June, Tesla received approval for about $465 million in low-interest loans to accelerate the production of affordable, fuel-efficient electric vehicles.

The loans are part of the Advanced Technology Vehicle Manufacturing (ATVM) Program, which provides incentives to new and established automakers to build more fuel-efficient vehicles. Created in 2007, the $25 billion ATVM aims to reduce America’s dangerous dependence on foreign oil and create “green collar” jobs. The program is entirely unrelated to the stimulus package or the so-called “bailout” funds that General Motors and Chrysler have received.

About Tesla

Tesla Motors is the only automaker that is already manufacturing and selling highway-capable electric vehicles. Tesla, which achieved overall corporate profitability last month, has delivered nearly 700 Roadsters to customers so far. The company's goal is to produce increasingly affordable cars to mainstream buyers – relentlessly driving down the cost of EV technology. Tesla also sells patented powertrain components to other automakers.

Contacts

Rachel Konrad
Tesla Motors
415-335-8932
rachel@teslamotors.com

James Keene, City Manager
City of Palo Alto
650-329-2563
James.Keene@CityofPaloAlto.org