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...I don't understand Tesla's logic on that one: they would rather spend a quarter billion dollars on constructing a plant in CA then get an existing plant for next to nothing in MI....
Tesla can't raise money, stalls in effort to build factory
The company builds its Roadster model in another state
So not only does Tesla need to look for an existing building, but it helps to find an outdated manufacturing plant that is at least 20 years old and needs to be modernized. "Fixer-upper" anyone?The Energy Department rules favor domestic automakers and suppliers. Manufacturing facilities eligible for the loans must be in the United States, along with all engineering and retooling. Preference is also given for modernization of manufacturing plants that are more than 20 years old, and most of the foreign automakers’ plants in the United States are more recent than that.
Tesla Motor's plans to build a 500-worker auto assembly plant in San Jose appear to be dead.
Bad news for treehugging gearheads this morning. Tesla had originally planned on opening a new facility in San Jose to build the Model S electric sports sedan, but the financing fell through. (Welcome to America, Tesla) So as it stands now, the company is going to redirect a $450 million government loan that was originally going to help build the facility into the general budget which will help with the Roadster development.
Tesla still optimistically plans on building the BMW 5 Series electric fighter, but who knows when that will be. However, the company does plan on revealing a fully functional model on March 5. I wanna drive it. Can I drive it? Please?
Along with local subsidies for the plant, CA was going to do something about buying manufacturing equipment then leasing it back to the company. That deal likely isn't available outside of California.
I don't think that's a fair assessment of the costs of having manufacturing in Michigan. Michigan also comes with being a lot further away from where the design studios will be.
I also think putting auto manufacturing where it's been proven that they're not very good at it is probably not the best way to go.
I think what SByer forgot to mention was that along with the proximity with the design studio, is more importantly proximity to core customers (of which most are in the west, esp CA) and also with Pacific shipping ports (for the battery cells (in the future if Tesla is making a battery pack in their own factory), motors (from Taiwan right now), which are mostly made and shipped from Asia). So having the facility in the West definitely has some logistical advantages (saves time and shipping costs).The proximity between an auto company's design studio and their assembly plant is a non-issue with today's internet and communications technologies.