Tesla to Build in San Jose

After toying with the affections of the state of New Mexico, Tesla Motors has decided to uproot itself from the middle of the Bay Area and transplant itself--and build a new production facility--in San Jose, Calif.

Tesla says it's going to build a new $250 million plant in San Jose, where it will also consolidate its headquarters and research facilities. Some 250 existing employees will make the move 20 miles further down the peninsula. Production of the Tesla Roadster, which just received its final production gearbox, will stay in England. In a release, the startup says it has more than 1,200 deposits for the Roadster and has delivered 30 of them.

Work begins on the new facility next summer. The electric-car company hopes to employ up to 1,000 workers at full production speed. It will build the Roadster as well as the Model S sedan, which Tesla promises will use lithium-ion batteries (like the 2011 Chevy Volt and the upcoming Prius) to provide five-passenger seating and zero emissions at a $60,000 price tag.

Sedan production is slated to begin at the end of 2010. 2008 Tesla RoadsterEnlarge PhotoAfter toying with the affections of the state of New Mexico, Tesla Motors has decided to uproot itself from the middle of the Bay Area and transplant itself--and build a new production facility--in San Jose, Calif. Tesla says it's going to build a new $250 million plant in San Jose, where it will also consolidate its headquarters and research facilities. Some 250 existing employees will make the move 20 miles further down the peninsula. Production of the Tesla Roadster, which just received its final production gearbox, will stay in England. In a release, the startup says it has more than 1,200 deposits for the Roadster and has delivered 30 of them. Work begins on the new facility next summer. The electric-car company hopes to employ up to 1,000 workers at full production speed. It will build the Roadster as well as the Model S sedan, which Tesla promises will use lithium-ion batteries (like the 2011 Chevy Volt and the upcoming Prius) to provide five-passenger seating and zero emissions at a $60,000 price tag. Sedan production is slated to begin at the end of 2010.