Tesla Receives $34.7M Tax Break to Expand Production

Tesla Receives $34.7M Tax Break to Expand Production

American electric automaker Tesla has received a $34.7-million tax break from the state of California in order to expand production.

According to the report, Tesla will get to avoid paying sales and use tax on $415 million of manufacturing equipment. The new equipment will help the American automaker to more than double the number of vehicles it can build at its Fremont, Calif. factory. In addition, Tesla will be able to assemble more electric powertrains for Daimler and Toyota.

SEE ALSO: 2013 Tesla Model S Review – Video

This year, Tesla expects to build 21,500 Model S vehicles but hopes to expand its yearly production to 35,000 units. This isn’t the first time Tesla received tax exemptions; when it purchased equipment to retool the former New United Motor Manufacturing Inc. plant in 2010, it was exempted from paying taxes on equipment worth up to $612 million. The state of California believes the new equipment will allow Tesla to add 112 new permanent jobs.

GALLERY: 2013 Tesla Model S


[Source: SFGate]

Discuss this story at our Tesla forum.