"The news stunned city officials from Downey, who expected to vote Thursday on a lease deal allowing Tesla to rent 20 acres of city property south of Los Angeles. Downey spent months courting the automaker to locate its factory there, and officials said they were certain of clinching a deal after meeting with Musk recently.

"Tesla has been extremely disingenuous in their dealing with Downey, and I now have new appreciation as to why America is fed up with many large corporations," Downey Councilman Mario Guerra said. "This last-minute betrayal is even more shocking because (Downey) was hours away from signing the lease with Tesla that would have been an economic boon for the city."

Downey had offered to waive $6.9 million in rent in hopes that the plant could create up to 1,200 jobs and revitalize its reputation as Southern California's high-tech hub."