California Energy Commission grants Tesla USD 10 Million for Model X SUV


The California Energy Commission has approved Electric automobile manufacturer Tesla for a $10 million grant, which will be used for the Model X SUV. The money will be used to buy components for the electric SUV as well as the expansion of its manufacturing prowess of its Fremont factory. It is believed that Tesla will be matching the grant with $50 million of their own funds.


In February 2012, the Model X SUV was unveiled and garnered over $40 million in sales. Tesla is credited for building zero-emission cars and creating over 1,500 jobs in California. California Air Resources Board member Ryan McCarthy spoke about how Tesla was the only company that actually requested them to increase their targets under zero emission rules and that Gen 3 (in the pipeline) would be a ground breaking vehicle.

Tesla stated that production on the Model X will start in 2014 and will help create 700 vacancies. The $10 million grant will be used to fill these vacancies. The vice president of the company mentioned that the company’s main goal is to aggressively promote electric automobiles and not just produce electric sports cars.

Carla Peterman, who is the commissioner for California believes that the model X SUV will help create publicity for electric vehicles, which should lead to more people acquiring them.