Electric carmaker Tesla Motors has received $10m grant from the California Energy Commission in the US to manufacture the Model X sport utility vehicle (SUV).

Tesla will further invest $50m to purchase equipment for the components of Model X.

The automaker will use the grant to expand capacity at its Fremont plant in California, which currently manufactures the 2012 Model S Sedan and employs 1,500 people.

Production at the company's Fremont plant is scheduled to start in 2014.

Tesla claims that the Model S is the enhanced range electric car featuring three battery pack options to meet the requirements of different drivers.

In 2010, Tesla acquired the Fremont plant which was initially started by General Motors (GM) and later operated as a joint venture between Toyota Motor and GM.

In 2012, the automaker planned to produce 5,000 units of the Model S but later it reduced the number to to 3,000 vehicles.