Tesla Motors To Open Technical Center In Rochester Hills

Jan 26, 2007 - Tesla Motors, Inc., a new automotive manufacturer of all electric vehicles, today announced that it is opening a technical center in Rochester Hills to develop its White Star program. Tesla Motors made news earlier this year with the launch of the Roadster, the second fastest vehicle in the world from zero to 60 miles an hour in recent testing. The $92,000 Roadster has been sold out with 270 orders placed in 2006, and delivery expected to begin in May of 2007.

Tesla Motors approached Mayor Bryan K. Barnett, the Michigan Economic Development Corp. (MEDC) and City staff in late September of 2006 to discuss its need for a technical center in southeast Michigan. The City’s Manager of Economic Development, Dan Casey, at the Mayor’s direction, worked with the company to identify sites in metro Detroit, and to provide information on potential strategic partners. After a wide search that included the Plymouth area, Southfield, Troy and Auburn Hills, Tesla Motors settled on a building in the Great Lakes Interchange and Rochester Hills SmartZone™.

“I instructed staff about the importance of this project for the auto industry and Michigan,” said Mayor Barnett,
“and to do whatever it took to locate the technical center in Rochester Hills.” He added that his economic devell opment strategy calls for the attraction of companies and jobs in the advanced automotive and alternative energy industries.

Tesla Motor’s project will create 60 high-paying scientists and engineering jobs. Based on an analysis conn
ducted by the MEDC, Tesla Motor’s project will create 76 direct and indirect jobs. It also will invest $47.77 million in tooling in Michigan.

“Rochester Hills companies, such as Energy Conversion Devices and Wavecrest, are creating the future. We need to develop green technologies and further diversify our economic base,” said Mayor Barnett. “Tesla Motors has developed a car that is all electric, can travel up to 250 miles between charges and is virtually silent. I felt that we had to pursue this opportunity aggressively, and I’m very pleased that we were successful in bringing Tesla Motor’s technical center to the community.”

Early yesterday the Michigan Economic Growth Authority awarded a high-tech MEGA to Tesla Motors in support of the project. The MEDC’s economic analysis estimates that increased economic activity created by the expansion will generate $23.7 million in personal income for Michigan workers over the life of the tax credit. Currently, Tesla Motors is seeking a site for a manufacturing plant and is being pursued by North and South Carolina, Arizona, as well as Michigan.

The key to Tesla Motor’s technology is its use of lithium-ion batteries. The innovative three-phase induction motor can propel the vehicle to a top speed of 130 MPH and accelerate quicker than a Porsche 911. Tesla 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.”

The purpose of the White Star program is to develop an all-electric sedan using the same proprietary technology. The development of the new sedan has been underway for several months and will be accelerated with the opening of the technical center.

“A lot of people contributed to bring Tesla Motors to Rochester Hills,” said Mayor Barnett. “I expect that Tesla
Motor’s future success will help to promote Rochester Hills to other companies. The net effect will be the
development of environmentally friendly technology, investment in the community and region, and jobs for our
residents.”

“We welcome this innovative company to our business family and will be recognizing the opening of the techniical center at a ribbon-cutting ceremony in late February.”

Contact Information:
Dan Casey, Manager of Economic Development
Phone: 248 841-2577

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