Tesla jilts Downey

For months, Downey officials said Tesla was ready to cut a deal to build electric cars at the site of the old Downey Studios. The City Council was hours away from voting on the terms of a lease. But it's not going to happen. In an hour or so, Tesla is announcing that it will team up with Toyota to build its Model S sedan at the shuttered NUMMI plant in Fremont. "We're shocked, appalled, and disgusted," said Downey City Councilman Mario Guerra. "We have been dealing in good faith with Tesla and feel stabbed in the back." It'll mean many hundreds of jobs up north, good news for the NUMMI workers who were let go when Toyota stopped production earlier this year. Still unclear is the role that Toyota will have in the new venture.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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