The Tesla Roadster, a zero-emissions sports car.

Eco-friendly motor company comes to San Jose

By: Ryan Buchan

Posted: 9/25/08

Tesla Motors, a producer of zero-emission cars, announced its plans last week to build a factory and business offices in North San Jose.

The plant is expected to bring in 1,000 jobs, said Rachel Konrad, a Tesla Motors spokeswoman.

"I think it is a great opportunity for the students here at San Jose State University," said Randy Floresca, a senior mechanical engineering major and president of the SJSU chapter of the Society of Automotive Engineers International. "Definitely need to take advantage of something like this, especially the engineering students."

Tesla currently produces the Roadster, a sports car, and is looking to produce a sedan called the Model S in its new facility. Tesla cars run on a lithium-ion battery pack, and travel more than 200 miles on a single charge.

"I think it's great on a number of levels," said Bruce Olszewski, an environmental studies lecturer and director of the Center for Development of Recycling. "It's a statement of the strength of our interest, and it's an economic statement of the strength of alternative fuels in the market. … Secondly, of course, it is great for the local economy because it will create jobs for the city and surrounding area."

The factory should also help the city by bringing a larger tax base to the city, said Terry Christensen, a professor of political science.

"It's a good thing for San Jose," he said. "Every city wants jobs and tax base, and these are good jobs - jobs that will pay well, and it supplements the property tax base and sales tax base."

Konrad said Tesla plans to break ground next summer on the new building. First, they would construct the assembly line factory to build cars, and then it would set up its corporate offices.

The planned location is near Highway 237 and Zanker Road.

"It's in an industrial location that (the city of San Jose) have been trying to get a business into for quite a while," Christensen said. "So it sort of fills a gap for San Jose in terms of land use."

Mayor Chuck Reed listed on his Web site that his goal is to create 25,000 clean technology jobs.

"San Jose and the Silicon Valley has become the Detroit of the 1950s," Olszewski said. "What is different between now and being a Detroit, we are talking about clean energy and we are talking about Silicon Valley being a center of innovation."

Tesla Motors had multiple locations it was considering to build a plant. San Jose beat out Vacaville and New Mexico, Konrad said.

"Primarily because of the huge talent pool of engineers and technology," Konrad said.

She said that the San Jose location would be closer to the current staffs' homes than its current location in San Carlos.

"It's going to revolutionize the way that cars work and it's all starting here," said Eric Stackpole, a senior mechanical engineering major.

Tesla was thinking of New Mexico because of its cheaper land and labor, but Gov. Arnold Schwarzenegger offered tax incentives to bring it to California, Konrad said.

"Gov. Schwarzenegger gave an incentive package and a very persuasive discussion," Konrad said.

The Mercury News reported that Gov. Schwarzenegger is on the waiting list to purchase a Tesla car.

Tesla already offers internships to students and has given jobs to students who have been part of the internship program, Konrad said.

Konrad said that as the company moves to San Jose and expands, there should be more internships offered.

"It's a good place because there are a lot of interested engineers who want to work there," said Johanna Knudsen, a senior mechanical engineer and member of the Society of Mechanical Engineers. "I wouldn't mind working there."