Tesla Plans Michigan R&D Center

Tesla Motors Inc., a specialty electric-vehicle maker based in San Carlos, CA, plans to invest $47.7 million to establish a new research and development center in Rochester Hills, MI.

Tesla won acclaim for the development and introduction of its Lotus Elise-based electric Roadster, a $100,000 sports car powered solely by advanced lithium-ion batteries and a unique 3-phase induction motor.

The Tesla Roadster can sprint to 60 mph (97 km/h) in less than 4 seconds and achieve a top speed of about 130 mph (209 km/h).

The new engineering center, which will boost Tesla's employment in Michigan from nine workers to 76, will assist in the development of technologies for additional models, including a new electric 4-door sedan the company reportedly is planning to introduce in the next several years.

“By locating our R&D center near Detroit, we will have access to the great talent pool that exists here in automotive engineering and design,” CEO Martin Eberhard says.

A 3-year, $602,000 single business tax credit from the Michigan Economic Development Corp. convinced Tesla to choose Michigan over a competing site in South Carolina.