An official who's been negotiating with Tesla Motors Inc. to open an auto factory in Downey, California, says the carmaker has chosen instead to partner with Toyota to build electric cars at the former NUMMI plant in Fremont.
Downey Councilman Mario Guerra says Tesla CEO Elon Musk called him Thursday to announce the decision.
A call to Tesla was not immediately returned Thursday. Tesla is planning a Thursday news conference with Gov. Arnold Schwarzenegger at its Palo Alto office.
Neither side has said what will be discussed.
A Toyota spokesman declined to comment.
Guerra says the Downey City Council was about to vote on a lease deal with Tesla. He says Musk was apologetic that the deal fell through.
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