San Jose - Plans to build a luxury electric car manufacturing complex and office in north San Jose have been abandoned by Tesla Motors. This comes after the company was unable to raise the $100 million in venture capital money it needed to finance the project.
Tesla is now relying on the government to give it $400 million in auto bailout loans. However, the government prefers giving those loans to companies that plan to build on top of old factories. The 89-acre piece of land in San Jose that Tesla was considering is still an open field, making it harder to qualify for that government loan.
Tesla's future remains in question, and the company is currently shopping around for other manufacturing sites across the state. Meanwhile, San Jose officials said they were hopeful they would find another property for Tesla in the city.
