New Mexico may be The Land of Enchantment, but at least one developer from the state is less than charmed with Tesla Motors.

The electric-vehicle maker has been sued by Rio Real Estate Investment Opportunities for what the developer says was an agreed-upon deal for Tesla to produce its Model S battery-electric sedan in New Mexico, according to website Gigaom.

Tesla allegedly reached an agreement in early 2007 to have Rio Real Estate build a 150,000-square-foot factory and lease it out to the automaker for $1.35 million a year for 10 years. Instead, Tesla decided to start Model S production in California after reaching an agreement with Toyota in 2010 to make the cars at the old NUMMI Toyota-General Motors joint venture plant in the San Francisco Bay Area. We asked Tesla for comment on the matter, but spokeswoman Shanna Hendriks told AutoblogGreen that the company does not comment on pending litigation.

Tesla, which in June started deliveries of the Model S, said last week that its second-quarter loss widened by 84 percent to $106.5 million because expenses jumped and revenue fell as the company geared up for the car's debut.


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  • 47 Comments
      Bill
      • 2 Years Ago
      The agreement is online, signed by Elon Musk himself on February19, 2007. State of NM was providing heavy incentives, as well as option for more land for an adjoining test track. Gov. Schwarzenegger upped the ante for CA. http://gigaom.com/cleantech/new-mexico-developer-suing-tesla-over-lost-electric-car-factory/
      Gabbo
      • 2 Years Ago
      Musk is a smug A-hole, no doubt. I hope he get's what's coming to him.
      akcssales
      • 2 Years Ago
      Looks nothing like a Maserati-Wait-My bad.
      bobdaily99
      • 2 Years Ago
      Did they actually BUILD the factory???
      bakethis
      • 2 Years Ago
      I saw a Tesla, which was the two door sports car design, in our neighborhood a few weeks ago. It looks better in the pictures. It may perform, but it's really low and has clunky lines. The S looks like a Jaguar. Sounds like Rio Real Estate may have a claim. Wonder why Tesla considered New Mexico to begin with.
      talari
      • 2 Years Ago
      Hopefully The Extra Terrestrials will share with us their battery technology. Until we get practical storage batteries, electric cars can't compete.
      buckeye3118
      • 2 Years Ago
      It was moved to California to help PopStar MESSiah buy votes.
      Rocketski
      • 2 Years Ago
      Telsa, another joke on America manufactured by Obama!
        Joesph
        • 2 Years Ago
        @Rocketski
        funny considering Tesla has been around before Obama was even a candidate the 1st time
        • 2 Years Ago
        @Rocketski
        [blocked]
      Owen
      • 2 Years Ago
      another obama type, dopey idea
      Burr
      • 2 Years Ago
      Oh goodie, another empty expense for the Feds to pay.... Undoubtedly this means another government bail out; they do so love to invest in failure.
      brennemanbelkin
      • 2 Years Ago
      If Tesla did indeed breach the contract, they shoiuld pay. That's one ugly car, oh by the way.
      rjen164497
      • 2 Years Ago
      Another company spending American taxpayers money. I heard that one of the upper management people made a statement, " Why should we spend Obama's money to live in New Mexico, when we can live in sunny California?".
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