Tesla Motors to stay in Calif. after tax break

Tag : generation equipment

Gov. Arnold Schwarzenegger and state Treasurer Bill Lockyer workedout the deal for Tesla Motors Inc. after learning that the SiliconValley-based company intended to build its second-generationvehicle in New Mexico.
The financial break, announced Monday, allows Tesla to avoid payingstate sales tax on equipment it buys to build its Model S. Thatwill save the company 7 percent to 9 percent on each purchase.
The five-passenger sedan is expected to cost about $60,000 and willbe able to travel 225 miles between charges to its electric engine.
Schwarzenegger says it drove him "absolutely insane" to learn Teslaplanned to take its environmentally friendly technology to anotherstate.
The governor is among several celebrities who have ordered Tesla'sfirst-generation electric sports car, the Roadster, which has abase price of $109,000.
The car goes from a dead stop to 60 mph in just under four secondsand tops out at 125 mph. The roadster takes 3 1/2 hours to rechargewhen its batteries are depleted.
The cars started arriving this spring at Tesla's first dealership,in the Westwood neighborhood of Los Angeles. Schwarzenegger isawaiting delivery.
Tesla's decision to remain in California is unfortunate, said FredMondragon, secretary of New Mexico's Economic DevelopmentDepartment. He said several European companies are eager to takeadvantage of New Mexico's economic incentives for companies thatdevelop clean energy.