Boston, MA 02/27/2014 (wallstreetpr) – Tesla Motors Inc. (NASDAQ:TSLA) looks set to engage in a legal battle with a new proposal in the New York legislation, that is intended to bar it from selling its Electric vehicles directly to consumers. The bill is currently being pushed by an automobile dealers association in New York. The dealers have gone forth to convince the governor Andrew Cuomo to sign the bill if law makers in the state give it a go ahead.
Environmentalists on their part have distant themselves from the bill saying it unfairly targets electric vehicle manufacturers such as Tesla. The organization maintains that the bill could restrict the sale of the environmentally friendly vehicles which could have a massive effect on the green car industry.
Tesla Motor proposed Gigafactory
Tesla Motors Inc. (NASDAQ:TSLA) has given additional information on its mega project codenamed Gigafactory that aims at advancing the technology of manufacturing Lithium batteries. The company is planning to offer $1.6 billion worth of convertible notes to help in the building of the facility. The motor company is currently seeking between 500 acres and 1000 acres in Arizona, Mexico and Texas for the building of the mega facility.
Building the Gigafactory is expected to cost Tesla approximately $5 billion with the factory planned for opening in 2017 and should see the creation of up to 6500 jobs. The plant is expected to reach its full operational capacity as of 2020. The project is expected to cut the company costs of producing the Lithium batteries and should enable it produce more than it is producing.
Tesla Motors Inc. (NASDAQ:TSLA) plans to offers $800 million of its aggregate principal convertible notes that will be due in 2019 and another due in 2021 worth $800 million also for the project. Tesla also confirmed that the 2021 notes could be converted into cash ones they mature.
Tesla Motors Inc. (NASDAQ:TSLA) was up by 2.02% on Wednesday trading session at the back of the positive news on its Gigafactory closing the day at a high of $253.
