Thursday, May 20, 2010

Tesla to move plant to North California

It is as if a million voices cried out and were suddenly silenced. Tesla is locating its plant at the recently shuttered NUMMI plant in Northern California.

The news stunned city officials from Downey, who expected to vote Thursday on a lease deal allowing Tesla to rent 20 acres of city property south of Los Angeles. Downey spent months courting the automaker to locate its factory there, and officials said they were certain of clinching a deal after meeting with Musk recently.

"Tesla has been extremely disingenuous in their dealing with Downey, and I now have new appreciation as to why America is fed up with many large corporations," Downey Councilman Mario Guerra said. "This last-minute betrayal is even more shocking because [Downey] was hours away from signing the lease with Tesla that would have been an economic boon for the city."

What a terrible blow to Southern California. It makes sense for Tesla, since they don't have to wait for a new factory to be built. But, they could have built the new factory to meet their specifications, plus construction of a new factory would have a greater economic impact.

How terrible does Downey feel for playing the fool?

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