California Positively Out of the Running for Tesla Battery Plant

Land costs and tax rates said to be determining factors as to why Tesla ruled out California, focusing instead of four other Southwestern states: Texas, New Mexico, Nevada and Arizona

Published: 09-Mar-2014

California loves Tesla Motors.

The Palo Alto electric car maker's Model S sedan is the state's new eco-luxury status symbol. Californians bought more than a third of Teslas sold globally last year. Residents of the state pack the order list for Tesla's next offering, a sport utility vehicle.

California pollution-control policies enable Tesla to rake in tens of millions of dollars each year from selling environmental credits to other automakers — a key source of Tesla's revenue.

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