Tesla Hits a Speed Bump on the Road to Success
As part of this new business plan, Musk also confirmed that Tesla will be closing its engineering offices in Rochester Hills, Michigan, and relocating that function to a new 89-acre consolidated headquarters to be built in San Jose, California. The firm is currently awaiting environmental approval to proceed with construction of this enlarged facility. Finalizing that authorization will also put a low-cost Department of Energy loan guarantee into effect, which will underwrite a large portion of the developmental budget for the upcoming Model S sedan. Musk anticipates that DOE help will become available sometime next spring.
Tesla still plans to show its upcoming Model S to the public early in 2009 but will delay final engineering, tooling and supplier contracting details until the corporate financial situation gets fully stabilized. That decision will result in the projected on-sale date for the new Model S moving from early in 2011 to a mid-year window. It will be interesting to see how everything plays out.