Tesla Puts Model S Factory on Hold

Author JoeDigital

The Tesla company has put a hold on plans to build a new factory in San Jose, California. The plant, which was announced last year, and had been intended for the manufacture of the Model S, has been delayed because the corporation was reportedly unable to raise the $100 million venture capital required to begin the operation.

It may also be that the company, which builds luxurious electric sports cars, is hoping to get a share of the Advanced Technology Vehicle Manufacturing Program, and that would give them the working capital for both the planned factory and a separate powertrain facility. The Model S is a four door sedan, a less expensive counterpart to existign models, and is planned for public availability in 2011.

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