 January 16, 2007
Contact: Michael Shore, MEDC
Governor Announces Tesla Motors to Locate New R&D Center in Rochester Hills Governor Jennifer M. Granholm announced today that high-tech specialty auto manufacturer Tesla Motors Inc. will invest $47.7 million to locate a new R&D and engineering center in Rochester Hills. Assistance offered through the Michigan Economic Development Corporation convinced Tesla Motors to select Rochester Hills over other competing sites inSouth Carolina. The project will result in the creation of 76 Michigan jobs. Tesla Motors currently employs nine workers in Michigan. “Tesla Motors is the latest company to choose to locate and create jobs in Michigan because of our outstanding workforce and competitive business climate,” Granholm said. “Investments like these will help make Michigan a leader in alternative energy development and free the nation of its dependence on foreign oil.” California-based Tesla Motors produces an electric roadster-style car powered by lithium-ion batteries. The innovative three-phase induction motor can propel the vehicle to a top speed of 130 MPH and accelerate from zero to 60 in about 4 seconds. Tesla Motors is the winner of the Business Journal’s Green Award in this year’s emerging technologies competition, the People’s Choice Award for Best Invention of 2006 and was one of Time magazine’s “Best Inventions of 2006.” “Bringing Tesla Motors here was truly a collaborative effort,” MEDC President and CEO James C. Epolito said. “The creative incentive package and Michigan’s high-tech workforce helped make the best business case for the state.” The MEDC approved a Single Business Tax credit valued at $602,000 over three years to win the project. The city of Rochester Hills has proposed a package of incentives estimated at $14,500 including a job fair for the company, a three-year abatement of the company’s personal property taxes and business advisory services through Oakland University. In partnership with Oakland County, Automation Alley has also offered a two-year foundation membership valued at $30,000. “Tesla Motors is excited about this milestone in the growth of our company,” Tesla Motors CEO Martin Eberhard said. “By locating our R&D center near Detroit, we will have access to the great talent pool that exists here in automotive engineering and design. The State of Michigan and Governor Granholm have been very helpful in making this happen. The team we build in this office will be shaping the future of automobiles in the backyard of the city that defined the American automobile industry one century ago.” An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate $23.8 million in personal income for Michigan workers over the life of the tax credit. The expansion is one of five economic development projects the Governor announced today. In all, they are expected to create and retain a total 1,790 Michigan jobs. “Rochester Hills has a strong base of automotive engineering and alternative energy firms and Tesla Motors fits the profile of company that we seek,” Rochester Hills Mayor Bryan K. Barnett said. “We’re very excited that Tesla will be locating in the City’s SmartZone™ and we have pledged all of our considerable resources to help them succeed.” In her 2006 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 164,000 jobs as a result of targeted assistance provided by the MEDC. Tesla Motors, a privately held company headquartered in San Carlos, California, was founded in 2003 with the mission of developing electric cars that offer styling and performance with zero emissions. More on the company and the Tesla Roadster can be found on the company website at www.teslamotors.com. The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the Web site at www.michigan.org.
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