REPORT: Downey, CA mayor claims Tesla Model S plant deal 99.9% done

Tesla Model S – Click above for high-res image gallery

When Tesla Motors does get around to building its second product, the Model S, it intends to build the body and chassis in-house unlike the Roadster that is largely assembled by Lotus. To do that, the company has been looking for a location for a factory, and it may have finally done that.

Mario Guerra, mayor of Downey, California – a place rumored to be a possibility for the plant – said on Monday that the deal is 99.9 percent done. Tesla CEO Elon Musk has said on several occasions that the most likely plant location is somewhere in southern California and Downey is midway between Los Angeles and Long Beach. The proposed location is a former movie studio. The one possible issue with this plan is that Tesla would be using funds from the DOE-administered ATVM program. That program was intended to help pay for the redevelopment of existing car plants to build new clean vehicles. The fact that the Downey location is not an existing plant may or may not be a problem. The Downey city council is expected to vote on the plan on Tuesday.