Electric car developer apparently won't build plant in Albuquerque.

The company is expected to announce today that it will instead build its all-electric sedans in California's Silicon Valley, where the company has its headquarters.

Gov. Arnold Schwarzenegger is expected to participate in the announcement, according to the San Francisco Chronicle.

 According to published reports, the State of California will pay for $100 million worth of manufacturing equipment, then lease it to Tesla. Other incentives include millions in tax breaks and job training grants.

New Mexico had offered a smaller package of incentives, including about $7 million in capital outlay for infrastructure at a planned West Side plant, tax breaks and job training funds.

Gov. Bill Richardson joined Tesla's founders and investors to announce the local plans in February, 2007.