Daily Auto News
Tesla CEO Elon Musk and Toyota CEO Akio Toyoda have announced they will collaborate on electric vehicle development and production. California governor Arnold Schwarzenegger joined them in making the announcement yesterday.
“Toyota will invest $50 million for a private placement of Tesla common stock and the state of California will provide a sales tax abatement to Tesla for capital equipment expenditures to tool up the plant,” explains Autoblog. “Musk estimated that the abatement will amount to about $20 million over the next several years.”
As part of the collaboration, Tesla will use the recently closed NUMMI factory in Frement, Calif. to produce its Model S sedan. They’re expected to produce 20,000 models, according to Left Lane News. The reopening of the plant will bring back about 1,000 employees – and possibly more as production increases.
The announcement regarding the Frement plant came as a surprise to most since Tesla had planned to build the Model S at a plant in Downey, Calif. Left Lane News notes, “Tesla CEO Elon Musk told Downey officials of the plan just hours before Schwarzenegger made his announcement this evening in Fremont.”
The Tesla Model S is scheduled to go on sale in 2012.
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