Tesla Gears Up For Another 35,000 Cars With Factory Upgrades

With help from the state of California, Tesla Motors [NSDQ:TSLA] is looking to significantly expand its production capacity.

Tax breaks will allow the company to save up to $34.7 million on $415 million of new manufacturing equipment, which will allow Tesla to add capacity for 35,000 more electric cars at the ex-GM/Toyota NUMMI plant in Fremont, California.

Tesla is already on track to build 21,500 Model S electric cars this year, so the added capacity should give it plenty of room for future growth.

In addition to continued Model S production, Tesla plans to introduce the Model X electric crossover in late 2014, as well as a sub-$40,000 car--tentatively called Model E--that could debut as soon as the 2015 Detroit Auto Show.