Tesla, manufacturer of high-end all-electric cars, is going to build a $250 million factory in San Jose, CA.
Interesting choice, since the price of land here is about as expensive as it gets anywhere in the world. I guess 10 years of free rent helps (Tesla).
Full story here at the BBC.
Mr Drori told BBC News Tesla hopes to deliver its first cars by 2010. They will have a range of about 240 miles (390 km) per battery charge. The production run is set for around 15,000 vehicles initially, with half of the line being sold in Europe.
While California came up with a hefty $100m (£56m) financing package, San Jose put land into the deal.
The first 10 years of the 40 year lease on the 90-acre plot will be rent-free. After that a yearly lease payment of $1.5m (£835,000) will be paid over the next ten years with a 2% increase year on year for the last 20.
San Jose, which is said to have America's highest per-capita concentration of hybrid cars, is aggressively encouraging cleantech companies to the area.
The Mayor claimed the city is the leader in attracting these types of companies with more than 40 already calling San Jose home and providing more than 2,500 jobs.