In Downey, It's About What Could Have Been - NBC Southern California

In Downey, It's About What Could Have Been

Tesla and Toyota intend to build electric cars in Fremont after a courtship with Downey that did not end well

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    NEWSLETTERS

    In Downey, It's About What Could Have Been
    Tesla Motors

    We know Downey is awesome, according to a subject line in an e-mail and the fact it's home to the world's oldest operating McDonald's, but we're also aware that Tesla thinks Fremont is more awesome.

    On Thursday, we found out just how much Tesla is willing to pay for such awesomeness.

    In a filing with the Securities and Exchange Commission, Tesla said it expects to pay about $42 million for a shuttered factory where the company plans to team with Toyota Motors Corp. to build electric cars.

    The filing also notes, "There are no assurances we will be able to formalize any joint development activities with Toyota:"

    In May 2010, Tesla and Toyota announced their intention to cooperate on the future development of electric vehicles, and for Tesla to receive Toyota’s support with sourcing parts and production and engineering expertise for the Model S. There are no assurances we will be able to enter into any agreements, including any purchase orders, with Toyota for such joint development projects on terms favorable to us, if at all.

    Toyota closed down its operations last month at the New United Motor Manufacturing Inc. plant in Fremont, where it had established a joint venture with General Motors Corp. in 1984.

    The Toyota-Tesla partnership announced last week stunned the auto world and brought hope to thousands of autoworkers who lost their jobs with the closure of the plant, known as Nummi. Pardon Downey if it wasn't in a celebratory mood.

    Tesla plans to use the factory to build its Model S, an electric sedan scheduled to go on sale in 2012.