Tesla Receives $10M Grant - Analyst Blog
October 12 2012 - 12:15PM
Zacks
California Energy Commission has granted $10 million to
Tesla Motors, Inc. (TSLA) to help the latter
purchase assembly equipments for its Fremont, California, factory
and hire 500 workers. The additional workers will be engaged in
building rechargeable sport-utility vehicle in California.
Tesla will be utilizing the fund for manufacturing electric car,
the Model X sport-utility vehicle. Model X is the best among the
SUVs designed by the company, coined together with performance and
brilliant functionality. The company will be further investing $50
million for the expansion of the manufacturing capacity in the
Fremont plant and purchase of equipment for the components of Model
X.
Tesla acquired the Fremont plant in 2010, which was initially
started by General Motors Company (GM) and later
operated as a joint venture between Toyota Motor
Corporation (TM) and General Motors. Currently, the plant
employs 1,500 people and makes Model S sedans. The Model S is an
electronic vehicle that intensively uses aluminum, which reduces
weight and produces zero emissions while offering rapid
acceleration and enhanced performance.
Tesla initially intended to produce 5,000 units of the Model S in
2012. However, the company reduced the guidance to 3,000 vehicles
starting at $57,400. The company has not divulged any specific
pricing guidance for Model X, which features distinctive
falcon-wing doors. The production of the SUV is currently underway
and the company plans to introduce the model in 2014.
Palo Alto, California-based Tesla designs and manufactures electric
vehicles and electric vehicle power train components for partners
including Toyota and Daimler AG (DDAIF).
Currently, Tesla retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
DAIMLER AG (DDAIF): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
TESLA MOTORS (TSLA): Free Stock Analysis Report
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