News - Tesla decides where they will build the Model S

 

Tesla eyes Downey, Calif. for Model S assembly plant

3388564188_4427beac12_bTesla Motors may have finally picked a site for its new Model S Assembly plant — an announcement that has been awaited with bated breath by California politicians and those in the advanced vehicle industry for months. While the company has yet to confirm the selection, the city of Downey, Calif., likes its chances — its mayor has gone as far as to say the deal is 99.9 percent done.

Today, the issue is under consideration by the Downey City Council, which may or may not approve a memorandum of understanding from the Industrial Realty Group, according to local newspaper the Downey Patriot. The site in question is 80 acres and only about 15 miles away from downtown Los Angeles (about 17 minutes driving time). About 20 of the acres included in the deal are owned by the city of Downey.

The land has formerly been used by Rockwell International and Boeing to build spacecraft. Right now, it is the home of Downey Studios, a film and television production house. If Tesla does take up residence there, it will be the first time car assembly has taken place in Southern California since General Motors closed its plant in 1992.

Mayor Mario Guerra says that “the deal points have all been agreed to,” but that a formal announcement of the town’s selection probably won’t come until next week. Tesla had also been considering an old Boeign factory in Long Beach.

This could be a major boon for the town and  those surrounding it, like Compton, Alhambra and Cerritos. The plant — to be built and opened with up to $365 million of the stimulus loans received from the Department of Energy — is slated to employ between 1,200 and 1,500 people.Downey itself has fallen on hard economic times after high-tech manufacturing jobs moved away.

Production is supposed to start by the end of 2011, with each Model S costing $57,400. With tax credits and other rebates, the price could be as low as $50,000 for consumers. Even though its two years away, almost 2,000 people have already pre-ordered the sleek battery-powered sedan.

Tesla’s headquarters and smaller assembly operations are currently located in San Carlos, Calif., but will soon move to the Stanford Research Park in Palo Alto.