Tesla has failed to secure the $100m it needed to continue with plans to build a headquarters on San Jose, CA’s Zanker Road, reports the San Jose Business Journal. Tesla had also planned to build a $250m manufacturing facility on the site, which would have assembled the firm’s development hell-bound White Star sedan. â€śWe abandoned that because the VC financing environment became so tight and difficult,â€ť say Tesla spokesfolks. Instead, Tesla has applied for about $400 million in two federal, low-interest loans through the Advanced Technology Vehicle Manufacturing Program. It is seeking $250 million for the Model S manufacturing facility and $150 million for an advanced battery and powertrain facility. But this means that the Zanker Road site can not be used, since the ATVMP funds may only be used to refurbish and retool existing facilities, not build at greenfield sites like Zanker Road. â€śWeâ€™re very optimistic, even with Zanker Road,â€ť said Michelle McGurk, senior policy adviser to San Jose Mayor Chuck Reed. â€śWe know all the reasons Zanker Road made sense, and it still might make sense depending on how things shake out.â€ť Or not. â€śWe canâ€™t afford to do anything that would jeopardize our ability to get the federal loan,â€ť says Tesla spokeswoman Rachel Konrad. She notes that Tesla is looking at other existing sites which might qualify for refurbishing loans. And the march from private to public funding sources for the auto industry continues unabated.
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