SAN CARLOS, Calif. (AP) -- The company that built the first mass-produced, all-electric car will keep its manufacturing plant in California, thanks to a new tax break.
Gov. Arnold Schwarzenegger and state Treasurer Bill Lockyer worked out the deal for Tesla Motors Inc. They acted after learning that the Silicon Valley-based company would build its second-generation vehicle in New Mexico.
The break, announced Monday, allows Tesla to avoid paying state sales tax on equipment it buys to build its Model S, saving the company 7 percent to 9 percent on each purchase.
The five-passenger sedan is expected to cost about $60,000 and will be able to travel 225 miles between charges to its electric engine.