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Tesla Receives $34.7 Million Tax Break to Increase Production

Tesla Motors will receive a $34.7 million tax break from the state of California in order to expand production of electric cars and powertrains at its Fremont assembly plant.
Tesla's Fremont plant in California 1 photo
Photo: Autoweek
According to the San Francisco Chronicle, the Palo Alto-headquartered automaker is being given a tax break on new manufacturing equipment worth up to $415 million. The new machinery will help Tesla expand annual production of the Model S sedan from 21,500 to 35,000 units and produce the brand new Model X electric crossover.

In addition, the equipment will allow the Fremont factory to add 112 new jobs and assemble more electric powertrains for Daimler and Toyota. The former will use the powetrains in the upcoming Mercedes-Benz B-Class Electric Drive, while the latter is already fitting them in the RAV4 EV.

“I’m pleased we could take this action to encourage Tesla to expand its electric vehicle production in California, which will create green jobs and improve our air quality,” said Bill Lockyer, chairman of the California Alternative Energy and Advanced Transportation Financing Authority.
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About the author: Ciprian Florea
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Ask Ciprian about cars and he'll reveal an obsession with classics and an annoyance with modern design cues. Read his articles and you'll understand why his ideal SUV is the 1969 Chevrolet K5 Blazer.
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