Jul 23, 2008

Tesla Motors opens doors

City could make $1,000 in sales tax per car sold

By Banks Albach / Daily News Staff Writer

When Tesla Motors officially opened to the public Tuesday, Menlo Park not only gained a new sales tax source but also a possible spark in the business revival effort for the southern stretch of El Camino Real.

With the sale of each energy-efficient but expensive electric Roadster, the city of Menlo Park stands to earn more than $1,000 per car. That soon will add up, considering that Tesla has a waiting list of more than 1,100 customers and expects to produce and sell about 20 cars per month. And that's sales tax that won't be going to San Carlos, the company's U.S. headquarters.

Tesla general manager Tom O'Leary said the company has shifted its sales operation from San Carlos to the Menlo Park location. It also opened showrooms this year in Los Angeles, Miami, Chicago and New York.

"As of Tuesday, the point of sale is in Menlo Park, and the sales tax will go to Menlo Park," said David Johnson, the city's business development director.

For each car sold - the base price is $109,000 - the city will get about 1 percent of the sales tax after the state gobbles up its share.

Tesla's showroom at 300 El Camino Real also will boost property tax revenues and has already sparked an interest from other companies looking at adjacent and nearby vacant buildings, City Manager Glen Rojas said.

The southern end of El Camino Real used to be home to several auto dealerships, but they slowly left to find less constrained locations with better visibility.

Tesla is the first business to set up shop there since the dealerships' exodus has signed a five-year lease with Stanford University, which owns all of the land between the Stanford Park Hotel to the south and the Menlo Station shopping center to the north.



E-mail Banks Albach at balbach@dailynewsgroup.com.


Fast Facts

Tesla Motors' Roadster sits two people, sounds like a turbine at high speeds and doesn't use gas. It is 100 percent electric and can be charged from a regular wall outlet.

The car's electric engine is more efficient and simpler to service than a traditional internal combustion engine because it doesn't have hoses, valves and as many moving parts.

Don't take it on a road trip, though. A full charge gets about 227 miles. But the company is researching higher capacity batteries, which it might offer as an upgrade.

- The Roadster can reach 60 mph in four seconds.

- It produces a tenth of the pollution and is six times more efficient than the best sports cars.

- It has a 225-mile range and can be charged from any wall outlet in 3 1/2 hours.

- The Roadster starts at $109,000, with bells and whistles adding a few thousand dollars.

- Future products: The company is working on a four-door, five-passenger car - the White-star is slated for assembly in 2009 and should go on sale in 2010. It will sell for about $60,000.

Source: Tesla Motors


E-mail Banks Albach at balbach@dailynewsgroup.com.