The “Governator” has prevailed at New Mexico's expense.
Tesla Motors, which planned to build an electric car factory in Albuquerque, will instead build it in California, where the company has been offered millions in incentives by a state eager to invest in energy alternatives.
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Tesla's founders and key investors, including PayPal founder Elon Musk, joined Gov. Bill Richardson in February 2007 to announce plans for a $35 million plant here, which they said would employ up to 400 and begin production in fall 2009.
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New Mexico had offered a smaller package of incentives, including about $7 million in capital outlay for infrastructure at a planned West Side plant, tax breaks and job training funds.
That announcement drew national attention, but the company's attention was soon diverted to last-minute fixes to its flagship $100,000 roadster, the first of which was finally delivered earlier this year.
In December, as it faced ongoing delays, the company unceremoniously ousted co-founder Martin Eberhard, who had made several visits to New Mexico on Tesla's behalf.
“This decision by Tesla is not surprising, given the recent instability of its management,” New Mexico Economic Development Secretary Fred Mondragón, said in a statement.
“Still, it's unfortunate that Tesla backed away from its commitment to the state.”
Toni Balzano, a spokeswoman for the New Mexico Economic Development Department, said Tesla informed Richardson's office of its decision before Monday's announcement.