California Energy Commission offered Tesla a $10-million grant for the launch of the Tesla Model X Crossover SUV.
Under the closed agreement Tesla has to match California Energy Commission’s $10 million in grant with $50 million of its own funds. Tesla will use the grant to expand capacity at its Fremont plant, located in California, where it manufactures the 2012 Model S Sedan. The automaker will also buy new manufacturing equipment, which will be used to produce components for the new Model X EV and hire 700 extra workers when production will begin.
Tesla’s Model X was unveiled this year at an exclusive event in California and it will be the automaker’s second mass-produced electric vehicle and third overall. The model offers seating for seven adults, beating Porsche ‘s performance, but what make this car really stand out are its famous falcon wing doors. Tesla advertises its Model X as offering the performance of a sportscar, the practicality of a minivan and the luxury of an SUV.
“Tesla has the unique distinction of being the only automaker to actually ask us to increase our targets under zero emission rules,” said Ryan McCarthy, science and technology policy advisor to the chair of the California Air Resources Board.