Toyota is investing$50 million to produce Tesla’s Electric Vehicles, creating more than 1,000 green jobs in California. Governor Arnold Schwarzenegger recently made the announcement together with the President and Chief Executive Officer of Toyota Motor Corporation Akio Toyota, Co-Founder and Chief Executive Officer of Tesla Motors Elon Musk and Lieutenant Governor Abel Maldonado.
The actor turned politician said that the historic partnership between the automotive companies would benefit California’s economy and environment.
Toyota announced it would invest $50 million in Tesla Motors to manufacture electric vehicles (EVs). Tesla on their part will find the New United Motor Manufacturing (NUMMI) plant in Fremont to start the production of their Model S EV in 2012 at the plant. The California-based company expects to produce 20,000 EVs a year once it reaches its full production capacity.
Governor Schwarzenegger said that, “What we are witnessing today is a historic example of California’s transition to a cleaner, greener and more prosperous future. We challenged auto companies to innovate. Both Tesla and Toyota stepped up a great deal, not only creating vehicles that reduce emissions and appeal to consumers but also boosting the economy.”
The Governor said that despite being a relatively new company, Tesla would soon give employment to thousands of people in California still reeling from the recent economic turmoil, leaving thousands of people in the state without jobs.
Tesla is a California company founded in 2003 in Silicon Valley. Their first vehicle, the Tesla Roadster, was the first production automobile to use lithium-ion battery cells and the first production EV with a range greater than 200 miles per charge and could go from 0-60 in less than four seconds.
The California Governor recently signed legislation, SB 71, to create a sales tax exemption for the purchase of green-tech manufacturing equipment in California.
He said that the State Government granted Tesla Motors an expanded sales tax exemption that applied only to Zero Emission Vehicles manufacturers and users. The expanded exemption is a part of California Jobs Initiative Program that encourages clean technology manufacturing companies to set up their business in the state.
In fact, he further said, Tesla’s founding and expansion in California is a direct result of his government’s green policies and the support that is being given by his constituents for the said program.