Mayor says Downey, Calif., close to deal for Tesla to build electric cars at former NASA site

By Daisy Nguyen, AP
Tuesday, November 24, 2009

Mayor: Tesla to build cars in Downey, Calif.

DOWNEY, Calif. — The mayor of Downey, Calif., says the city is close to making a deal with Tesla Motors to build an electric car plant at a former NASA manufacturing complex.

Mayor Mario Guerra said Tuesday that he has called an emergency City Council meeting to approve a memorandum of understanding with the private owners the 80-acre complex about 20 miles southeast of Los Angeles. If approved, the memorandum could facilitate a lease agreement with Tesla.

The San Carlos-based automaker is looking for a factory to build its electric sedan, the Model S.

Tesla currently builds the $109,000 Roadster sports car but is working on the Model S to target more mainstream drivers. It expects to sell the seven-seat sedan for about $50,000.

Calls to a Tesla spokeswoman were not immediately returned.

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