As the dust settles on the global meltdown, the state budget fiasco, and the prevailing wage struggles in San Jose, there is one very bright point of light to be seen. Tesla Motors’ decision to locate their primary manufacturing facility and headquarters in North San Jose is indeed a noteworthy event, a major shot in the arm for the local economy.
Is it something to cheer about? Definitely.
One might say, though, that it’s in the eye of the beholder. This much is very clear: Billions can get pumped into the Silicon Valley economy, $1.5 million eventually will go into the city’s coffers, and a thousand or so corporate and factory jobs will materialize. They hope to have the plant in operation by 2010 and the $60,000 electric sedan coming off the assembly line that same year.
Many cities tried for this, and the state, with our governor’s pushing, beat out New Mexico and other states to get the nod. San Jose did the rest.
The land set aside is in the buffer area of the Water Pollution Control Plant and clearly unfit for housing or retail uses. This clean-tech entry is a natural. In fact, Tesla officials credited Chuck Reed with sharing Tesla’s vision of making San Jose the epicenter of the clean-tech revolution—kind words indeed, and perhaps the clincher.
Clearly kudos are deserved. Let’s apportion some of the credit now. Mayor Reed and his staff get a lot of it; Deb Figone, the City Manager who directed the staff effort, deserves a big slice too; and jack-of-all deals Paul Kutko, as the lead staff person, must be high on the list of thank yous. Job well done.
This long-term lease is clearly—and cleanly—the type of aggressive marketing of the city that San Jose has needed for a long time, and seldom received. One would hope that this is the first of a series of well-directed initiatives to capture the emerging businesses that are springing up around the “green-tech,” “clean-tech” sectors.
In baseball parlance, we need to take what the pitcher is giving us, and not swing for the fences each time at bat. This is the part of the economy that we can attract in a big-time way. Yet, it seems that on this short swing, the ball may just have gone over the fence.
So does this “shot in the arm to the local economy” mean that the City will now trim their street trees, fix their sidewalks, maintain their parks, and upgrade the storm sewer system to relieve my neighborhood of it’s flood zone designation?
Or will it just mean that City workers get pay raises and benefit increases?
I think the latter.
John – occasionally, even in tough times, see a bit of water in the glass. This was good for San Jose. TMcE
Tom wrote:“Billions can get pumped into the Silicon Valley economy.”
At $60k per car, they’d have to sell almost 467,000 of them to reach a single Billion. Tens of millions, I can see, but Billions??
Check out this blog on the NY Times website:
http://bits.blogs.nytimes.com/2008/09/17/tesla-motorss-second-electric-car-will-be-made-in-silicon-valley/?scp=1&sq=tesla motors&st=cse
… the glass, John Michael, the glass – there is far more jobs and spin off than just selling the car. TMcE
#3
He might be referring to VooDoo economics where via magic $1 gets turned into $1,000,000. The “official” term is “induced and indirect income”. Still it is voodoo BS, and is used when there is not valid data to support the premise.
Yeah, Tom # 5, I know that. But your numbers are as voodoo as the projected ridership numbers were on light rail. BILLIONS?? PLURAL??? Ain’t no way, Tom, that the Tesla plant will inject a single billion into SJ’s economy.
Carl G. should get you to write up the projected numbers for BART in the upcoming election.
Direct, indirect, induced, millions, billions… whatever the number is, it doesn’t really matter unless cost is factored into the analysis. What did we pay?
It is a good thing San Jose is getting these jobs. Electric cars though, are not “green-tech,” “clean-tech” sectors with our current power sources. The electricity to power these cars comes primarily from coal, oil, or natural gas power plants. This just transfers the pollution problem somewhere else and does not reduce our dependence on fossil fuel. The only way these cars make sense is if we can build many new nuclear power plants to provide the massive energy we need to get us off of fossil fuels.
Will they also be showcasing their autos at the expanded convention center? I hope this really trickles down.
Sorry Tom,
I’m always in extra-cynical mode for a few weeks after I send off my property tax. The glass is 20% full. I’ll give you that.
It’ll be good to know that there’s something being built in San Jose besides IT related stuff. Cars! I understand cars!
But I’ve got to agree with Steve (#9). People who think that electric cars are some kind of a magic solution to our energy problems simply don’t understand basic physics.
The Tesla does nothing, in my estimation, to enhance San Jose’s status as a “green” city.
Finfan #12,
You can also tell that TMcE is a true politician. Math is irrelevant when you spend other people’s money for a living.
You can tell that JMO’C’s been too long in the lawyer biz (where there are 32 billable hours in an eight hour workday): at $60,000 per car, Tesla sales will hit the one billion dollar mark when the 16,667th vehicle gets sold.
#12—That’s why I was never a math major.
Why does Tesla need to sell ANY cars ? Just ATTEMPT to sell cars … sell none … THEN get a piece of the 700 billion dollars from the Treasury Department. Makes sense to me !
(Oh, wait a minute, will my taxes go up ?)
John – payrolls, bank loans, insurance – yep, I know a bit about them all. Remember, the 8 yrs. that I was Mayor did not make me think that it was a career, just something that you do for a while – hopefully better -than the other characters trying for it. I think my record on that job was pretty good – my Mom agreed. I left the real world; I am back in it. I wouldn’t have it any other way. TMcE
Confused,
I think you’ve confused the recent 25 billion dollar bailout to the auto industry with the 700 billion dollar ‘affordable housing’ related bailout to the mortgage companies.
It’s tough to keep track of all these government inflicted gunshot wounds and subsequent government bandaids.
TMcE says, “This clean-tech entry is a natural. In fact, Tesla officials credited Chuck Reed with sharing Tesla’s vision of making San Jose the epicenter of the clean-tech revolution—kind words indeed, and perhaps the clincher.
“Clearly kudos are deserved. Let’s apportion some of the credit now. Mayor Reed and his staff get a lot of it; Deb Figone, the City Manager who directed the staff effort, deserves a big slice too; and jack-of-all deals Paul Kutko [sic], as the lead staff person, must be high on the list of thank yous. Job well done.”
These kudos may be hastily disowned when this new company follows the trajectory of the downtown auto races. I predict it will have about a three year lifetime. I hope Reed, Figone, and Krutko gave very close examination to the past successes of these investors and to their business plan. This project may very well make the Gonzales garbage plan look really clean and very green.
. . . or this could be the next iPhone.
Like anything, it’s a combination of trusting the individuals running the company, right amount of oversight (not too much, not too little), and investing in the right technology.
Myself: given the choice between Oakland’s baseball team or the first full production road-ready electric vehicle, I’ll take the electric car.