[car fanatics]

Source
Photo credit: Tesla Motors
April 16, 2012
By: CF staff

The former engineer for Toyota Motor Corp. (7203), Volvo AB’s Mack truck unit and Renault SA designed the second-hand Fremont, California, plant. He equipped it with Ikea furniture and refurbished machinery to build battery-powered cars to take on the likes of BMW’s 5 Series, starting in about two months.

“The cost to set this up was very, very low compared to any new plant,” said Passin, vice president of manufacturing for Palo Alto, California-based Tesla. “Everything we are doing has a very good value return.”

[BasiliskSt]

But why high cost California? I think I would have done engineering in CA and manufacturing in a lower cost state like AZ, but they did get the empty NUMI plant if I recall. At the right price that might counterbalance high operating costs.

Investors will like attention to costs during the burn pre break-even.

[lengnert]

I am still not sold on the EV vehicle market as a whole, however if the well-healed money wants to buy these cars, so be it. I hope they sell the hell out of them. I do like to see any type of American manufacturing succeed (for the most part).

I agree with you, Bas, that they must've 'stolen' the NUMMI plant to justify locating production in Cali.

My hope is that long term this doesn't come back to bite them in the arse.