• Aug 23, 2010
Tesla Model S – Click above for high-res image gallery

When Tesla struck a deal a few months ago with Toyota to buy the closed NUMMI factory in Fremont, CA, it was made clear that the $42 million price tag only included the building and property. At the time, Tesla officials indicated that most of the equipment previously used to build Toyota Tacomas and Pontiac Vibes was unsuitable for its upcoming products.

Apparently, after going through the available machinery, Tesla did find some items it can use and has reached an agreement with Toyota and Motors Liquidation Company (the remnants of the old, bankrupt General Motors) to buy some of the equipment for a total of $15 million. Tesla has paid $4.6 million as a deposit toward the purchase and will close the deal along with the property purchase. The purchase likely covers generic equipment such as lift trucks, robots and paint equipment.



[Source: The Street]


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  • 24 Comments
      • 4 Years Ago
      With the purchase of the NUMMI plant, the partnership with Toyota, the government-backed loans, the successful IPO, and now this, I don't think the standard "vaporware" comments are going to be warranted anymore. Tesla is going to come out with the Model S and they are probably going to sell a lot of them.
        • 4 Years Ago
        I believe they are selling powertrain components and batteries currently as a revenue stream. I also don't think the S is 3 years out.
        • 4 Years Ago
        In the mean time for the next ~3 years they have no revenue stream at all.
        They have also blown through millions of dollars every month since the company first started out in 2003, only had one profitable quarter ( i forget which, but it probably had to do with selling ZEV credits to Honda ).

        I know companies start out as money losers, but this is not silicon valley. Every other car company started out making something that was actually profitable. I have a hard time understanding how they keep coming up with funding, especially when the larger automakers have affordable EVs waiting in the wings.
        • 4 Years Ago
        well consider that they have sold about 1000 cars in a ~4 year lifespan.
        • 4 Years Ago
        I really want Tesla to make it. I would buy the Model S in a heart beat, can't say the same of any offering from either GM or Ford. America needs an clean and stylish, luxury automaker.
        • 4 Years Ago
        Funny, it looks exactly like every other dot com model I saw fail in the past. Pump and dump, Elon is just waiting for the best time to dump.
        • 4 Years Ago
        Until they have produced a substantial number of cars, I think the comment is still valid. Just because I stand in a barn, it does not make me a horse.

        Just for kicks, go to autotrader.com, put in you zip and select Tesla. You actually cannot... It goes Suzuki, Toyota.
      • 4 Years Ago
      It seems that most new nameplates that become successful do so by starting with small affordable cars and working their way up like Hyundai/Kia. Tesla is starting with a 100k car and working their way down, which I just don't see working.
      The Model S will be $47k after the tax credit. I don't think enough people will buy in at that price for them to ever turn a profit.
      If you have ~$50k to throw around, there are some REALLY nice cars out there, and at the same time you probably aren't concerned with fuel costs or carbon footprint.

      I'm rooting for them, but until they have a dealer in every major city and at least one reasonably priced car people want... it's vaporware.
      • 4 Years Ago
      Its a good deal, I think Tesla is being too ambitious. The Roadster came out way behind schedule and with a much higher than estimated cost.
      http://www.oldcarsjunction.com/

      • 4 Years Ago
      I believe that Honda will be Tesla's savior in 4 years. Mark my words. Save this post to memory. I am making a big prediction here.
        • 4 Years Ago
        Tesla won't be around in 4 years
        • 4 Years Ago
        I think the better prediction is Toyota. Honda is so far out of the loop they probably don't even know what Tesla is.
        • 4 Years Ago
        I award you five internets in advance for your prediction, with a further five internets if you are indeed correct.
        • 4 Years Ago
        @ Jason: that's exactly why I believe that it will be Honda that acquires Tesla. They will need something quick to catch up and once Tesla proves that their technology is superior, Honda will purchase the company and turn Tesla into their technological savior.
      • 4 Years Ago
      Warren Buffett should invest Tesla than BYD.
      • 4 Years Ago
      This may move the Model S back in to pre-2013 production status...
      • 4 Years Ago
      Awesome looking car hahaha! Shades of Daewoo Lanos LOL
      • 4 Years Ago
      Any existing infrastruture with regards to equipment the company can take advantage of is only going to benefit them, and hopefully, translate to a better finished product coming off the line. Sounds like a good buniess move to me.
      • 4 Years Ago
      anyone else think the model s is a ripoff of maserati designs?
      • 4 Years Ago
      If Tesla succeeds, it'll be one remarkable story to write down in American history. I mean, they've practically got no mass-production machinery, yet they're getting off their feet admirably. When the Tesla Model S finally emerges, I certainly hope American buyers will flock to it instead of BMW 3/5 Series cars. Imagine the benefits to our economy. Damn, I'd love to call a premier car company American.
        • 4 Years Ago
        And yes, that is an LFA in my profile picture. XD
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