A California state agency has awarded Tesla Motors $10MM in matching funds to support manufacture of the Tesla Model X cross-over SUV. The award comes from the state energy commission and is a partial match for $50MM recently raised by Tesla from sales of additional stock. The money is earmarked to buy manufacturing equipment for Tesla's plant in Fremont.
The Model X is a key part of Tesla's effort to become a real car company by adding a seven passenger SUV vehicle with high range and performance – one version is powered by two motors instead of the regular one rear motor as used in the in-production Model S. The motoring press has reacted to the Model X favorably, citing its good looks and large interior although some have questioned the practicality of its upwardly rising "Falcon Wing" rear doors, a feature heretofore limited to the front doors of radical sports cars.
The Tesla grant is said to create 500 jobs at the Fremont plant. That's $20,000 per job. If true, that may be a good deal for the State and the company. If Tesla is a success, it will be a really good deal.
In an interesting side note, the same grant program gave a little less than $2MM to Zero Motorcycles which makes an all-electric motorcycle.
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