- Jan 29, 2009
Tesla cancels plans to move to San Jose
However, the DOE loan program favors redevelopment of existing industrial sites and the San Jose location was a greenfield. Tesla is now looking for new locations including former factory sites in both the Silicon Valley area and Southern California. Without the DOE money, it will be extremely difficult for Tesla to build anything new and getting that loan will be increasingly problematic. The program requires applicants to raise matching equity investments of 20-30% of the loan amount, which in this case would amount to $100-150 million. Since Tesla already failed to raise that much last fall, it's not clear that it can happen now.