Tesla Motors on Monday said it plans to build its lower-cost four-door sedan in California.
The move comes after the car maker had announced plans to put the plant in Albuquerque, New Mexico, and California approved financial incentives to electric vehicle makers.
“By offering this financial incentive, our goal is to ensure zero-emission vehicles realize their full potential in our state,” California Treasurer Bill Lockyer said in a statement.
The announcement was made by company CEO Ze’ev Drori and Governor Arnold Schwarzenegger at Tesla’s San Carlos, California, headquarters.
It comes after California’s Alternative Energy and Advanced Transportation Financing Authority approved an exemption for new zero emissions vehicle makers on sales and use tax from manufacturing equipment.
Tesla’s sedan, dubbed the Model S, is expected to go into production in 2010. The electric car will be able to go 225 miles on a single charge and will sell for $60,000, according to various reports.
Tesla has grabbed a total of $105 million in four rounds of funding. Mr. Musk has put in over $37 million of his own. The high-profile Silicon Valley auto startup has grabbed investments from Google co-founders Sergey Brin and Larry Page, among others.