Red 2013 Tesla Model S cars roll down the production line (Photo: @elonmusk on Twitter)
Tesla Motors [NSDQ:TSLA] is gearing up for increased production over the next few years with the aid of healthy tax breaks from its home state of California.
It'll save the company as much as $34.7 million on the purchase of $415 million of new manufacturing equipment, says SFGate--and would allow Tesla to expand annual production by 35,000 vehicles.
The company is currently on track to build 21,500 Model S sedans this year, so the new equipment would help expand Tesla's limits well beyond its current production capacity.
It's worth nothing that this capacity is unlikely to benefit the Model S alone, but also the upcoming Model X crossover model and Tesla's future lower-priced electric sedan, as well as increased capacity to build powertrains for Tesla partners Daimler and Toyota.
Sales of both new models, the latter expected to be significantly cheaper than the Model S, could comfortably out-pace that of the Model S, so increased manufacturing capability is a clear goal of Tesla's.
California ordinarily taxes the purchase of manufacturing equipment, but grants exemptions for clean technology companies in order to stimulate growth.
Tesla Motors falls under this banner, and has previously enjoyed tax exemptions on manufacturing equipment worth up to $612 million, to retool its current facility in Fremont, previously the New United Motor Manufacturing Inc. plant.
The new equipment could help Tesla create 112 new permanent jobs, according to the state--and the benefits of extra vehicle sales and increased employment are expected to make up for the loss of tax revenue from exemption.
According to data from the California Alternative Energy and Advanced Transportation Financing Authority, which issues the exemptions, there should be a $24.4 million net benefit to the state.
[Hat tip: Brian Henderson]