Tesla Motors' plans to expand just got a big boost, as the state of California has announced it will give the Palo Alto-based company a $34.7 million tax break to increase its production capacity. The EV manufacturer is being given a pass on sales and use taxes on up to $415 million worth of equipment, according to a report on the San Francisco Chronicle's website.

Tesla is currently on track to produce 21,500 cars, although the planned expansion should more than double that capacity to 56,500 units, adding 112 jobs at Tesla's Fremont factory. "I'm pleased we could take this action to encourage Tesla to expand its electric vehicle production in California, which will create green jobs and improve our air quality," State Treasurer Bill Lockyer said. The state estimates that between the additional jobs and (hoped for) increase in sales, it will recoup the costs of the tax break in more taxes.


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  • 160 Comments
      Koenigsegg
      • 1 Year Ago
      will never understand any of this stuff and will always avoid it and not have a care in the world.... seeing the comments, i dont want to be like you guys LOL.
      bluepongo1
      • 1 Year Ago
      Haters gonna' hate ... that's all they do. :-P
      Cool Disco Dan
      • 1 Year Ago
      No company should get any tax breaks and all should have succeed or fail on the merits of their product and plan.
        CoolWaters
        • 1 Year Ago
        @Cool Disco Dan
        You go first with the oil industry, and we'll follow.
          Grendal
          • 1 Year Ago
          @CoolWaters
          Because then those companies would move everything over to China. And most have anyway, tax break or not.
          Cool Disco Dan
          • 1 Year Ago
          @CoolWaters
          Why not all at the same time?
          2 wheeled menace
          • 1 Year Ago
          @CoolWaters
          Why would they all move to China? Oh right, China was made a preferred trade partner by Bill Clinton in 2000 and they have less liabilities and dramatically lower taxes. Oh, i don't know why any company would want that.
        Levine Levine
        • 1 Year Ago
        @Cool Disco Dan
        Cool Disco Dan: you are advocating capitalism, free market, and self-reliance. Those are 'verboten' subjects in socialist America.
      DRAGON
      • 1 Year Ago
      At least Tesla is engineering and fabricating their cars IN THE USA. And even just for that they deserve that help.
      over9000
      • 1 Year Ago
      How many carbon dioxides and energy wasted to produce, and eventually dispose those batteries?
        flubaluba
        • 1 Year Ago
        @over9000
        About the same amount your care releases into the atmosphere in a weeks worth of normal driving, so yeah not much at all.
        m_2012
        • 1 Year Ago
        @over9000
        You mean, recycle over and over. How many carbon dioxides and how much waste to search for, drill, pump, store, ship, refine, store again, add chemicals to, ship some more, store again, and then pump again for EVERY gallon of gas, just to waste 75% as heat after all that effort? 6Kw of energy wasted before an ICE even moves, plus all the pollution.
      sinistro79
      • 1 Year Ago
      Unlike GM and Chrysler, Tesla actually earned their break from the government by creating a product that people actually want to buy. I like that.
        onewayroll
        • 1 Year Ago
        @sinistro79
        Funny...I see pently of GM and Chrysler products on the road. Pretty sure those people actully wanted to buy them.
          Grendal
          • 1 Year Ago
          @onewayroll
          No. It was all a vast conspiracy. - sarc
        Brex
        • 1 Year Ago
        @sinistro79
        There is a lot of competition by states and cities for property development, building factories, operating businesses, etc., and tax breaks and other incentives are how they attract or keep those business. A state might give a $50M tax break and then reap those benefits from businesses by income tax, property taxes, other ancillary business, general economy boosts, etc. for decades afterward. It's not like they're not getting something for the tax breaks they're providing. If they didn't do it, the next city or state wood. This is true from renovating an old building for $500k, to building massive plants.
      eye.surgeon
      • 1 Year Ago
      So let's review the Tesla business plan. Millions in federal taxpayer money to start up. A $10,000 per vehicle tax credit to the millionaires buying the product. And a few extra million in state welfare to keep it rolling. Nice niche they're found there.
        Joeviocoe
        • 1 Year Ago
        @eye.surgeon
        Um... That "Millons" of taxpayer dollars.. Was a loan.. Which was paid back in full.. 9 years early. And that $ 10,000 credit... Represents money that a tax payer DOESN'T have to pay in taxes. And you don't have to be a millionaire to afford a Tesla. Most aren't.
        m_2012
        • 1 Year Ago
        @eye.surgeon
        $400M reinvested back into a US business plus hiring more US workers and you want to complain about them being able to write the tax off, on money they earned and are putting back into expansion? You must realize the state is not giving them a dime and that every major automaker bids the best tax breaks for their factories. This revenue is made up in spades by people working and paying taxes, producing goods, and otherwise not feeding off the system. I'm sorry that you shorted Tesla and got burned. Not too late to get in.
        kmdk78
        • 1 Year Ago
        @eye.surgeon
        Wrong.
      Levine Levine
      • 1 Year Ago
      The big socialist CA government breaks your leg, then gives you a crutch and expect you to be thankful. Having driven out nearly all heavy industry and manufacturers from the CA with anti-business atmosphere and heavy regulations, Sacramento's socialist politicians are redistributing wealth and subsidizing business in a manner that fit their notion of utopia. CA has the dubious distinction as being one of the highest tax states in the Union, but still managed to be insolvent for the past 15 years despite 'creative refinancing.' Socialism dies when it runs out of spending other peoples money, and California is on the death bed lying next to comatose Detroit.
        Grendal
        • 1 Year Ago
        @Levine Levine
        California is the 12th largest economy in the world at $2 trillion in 2012. http://money.cnn.com/news/economy/world_economies_gdp/
          Jesse Gurr
          • 1 Year Ago
          @Grendal
          Right, I was thinking lower 48. but yeah, Alaska is HUGE! Not much in the way of population though...
          Griffen W
          • 1 Year Ago
          @Grendal
          No, Alaska is the largest state in the USA by a massive margin. Its more than twice the size of Texas
          Jesse Gurr
          • 1 Year Ago
          @Grendal
          Technically Texas is the largest state but California is the most populous.
          2 wheeled menace
          • 1 Year Ago
          @Grendal
          It is also the largest state in the country. That might have something to do with it. They used to be the #7 economy in the world. You can't tax and over-regulate your way to wealth. Ah well, i am enjoying all the businesses that are moving to Utah. Not enough people to fill the jobs that are coming.. seriously.
        Joeviocoe
        • 1 Year Ago
        @Levine Levine
        A tax break on manufacturing equipment sales is a drop in the bucket compared to the sales tax revenue gained from increased production in California's newest industry. Detroit is losing the automotive industry... California may pick up the slack (before China does).
      stuart100s
      • 1 Year Ago
      It's important that multimillionaires like movie stars get tax breaks to purchase cars that most americans can't afford. If our gov't can't reward some "elites" at our expense, then what good are they?
        spam
        • 1 Year Ago
        @stuart100s
        It's not like the toolings are going towards $30k cars in 2-3 years time, eh? It's also not like this company is on track to contributing billions towards the local economy, and employs 6,000 in the Bay Area?
      Avinash Machado
      • 1 Year Ago
      So will people call it California Motors from now on?
        m_2012
        • 1 Year Ago
        @Avinash Machado
        Because they invested so much money and got a small tax break?
      Mchicha
      • 1 Year Ago
      corruption by any other name. You think a small company like Njoga coffee or PB Printing or the likes will get tax breaks despite doing some sort of industrial work in California?
      Pandabear
      • 1 Year Ago
      The way I see it, Cal probably get back that much afterward in income tax and sales tax with the increased production.
        jeff
        • 1 Year Ago
        @Pandabear
        Now you are using logic and reason....
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