With the help of tax breaks from its home state of California, electric vehicle builder Tesla is moving to greatly increase its production capacity ahead of several new model launches in the near future.
Tesla is purchasing $415 million of manufacturing equipment in order to expand annual capacity by 35,000 units at its plant, the former GM/Toyota joint venture NUMMI facility in Fremont, California.
A grant extended by California to clean technology companies will save Tesla as much as $34.7 million in taxes on the expenditure, which government authorities estimate will add 112 permanent jobs and, through tax revenue generated by the higher employment and vehicle sales, result in a $24.4 million net benefit for the Golden State.
The new equipment will allow Tesla to raise production levels far past the 21,500 Model S sedans it’s expected to build this year, ensuring that there is sufficient capacity to satisfy demand for the company’s three upcoming models.
Next year, Tesla is planning to launch the Model X, a Model S-based midsize crossover with distinctive “Falcon Wing” upward-opening rear doors. After that, a roughly $30,000 (after federal tax incentives) compact sedan called the Model E will arrive, and a small crossover is expected to join the lineup as well.
Recent Comments