Tesla Motors Inc (TSLA) to increase production capacity with help from tax breaks
Tesla Motors Inc (NASDAQ:TSLA) is going to increase their production capacity with the help of tax breaks from the state of California. Tesla will be able to save up to $34.7 million on $415 million of new manufacturing equipment. This will enable Tesla to add capacity for 35,000 more electric cars at their manufacturing facility in Fremont, California.
Tesla Motors Inc (NASDAQ:TSLA) is currently on track for building 21,500 Model S electric vehicles this year. Next year, Tesla will start building the Model X electric crossover. The lower cost electric vehicle that Tesla Motors is planning – codenamed Model E – is rumored to be debuting at the 2015 Detroit Auto Show.
Tesla will likely use the increased capacity to continue building electric power train components for Daimler and Toyota. The state of California is hoping that the tax break will continue to help Tesla grow.
Tesla could potentially add 112 permanent jobs with the tax breaks. Tesla Motors Inc (NASDAQ:TSLA) previously received tax breaks of $612 million of equipment when refurbishing the Fremont plant.
[Source: Motor Authority]
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry