Tesla to enjoy $34.7M tax break from California

By Kevin Davis on Thursday, December 19th, 2013

Tesla Motors will get a $34.7 million tax break from California to expand the company's production of electric cars and powertrains, SFGate News reports.

Tesla won't have to pay sales and use taxes on new manufacturing equipment worth up to $415 million.

The equipment will help the automaker more than double the number of Model S sedans it builds at its Fremont factory, SFGate News said.

Tesla said it expects to build 21,500 sedans this year. The new equipment would help expand annual production by 35,000 cars.