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Geared up for green car market
WHEN Tesla Motors Inc began taking orders last year for its all-electric sports car, celebrities lined up to purchase the sleek zero-emission vehicle with the six-digit sticker price.
But with plans in the works for a new headquarters and factory, the Silicon Valley startup hopes it is taking the first step toward making electric cars a presence in the parking lots.
Tesla is awaiting final approval of a deal with the city of San Jose to lease nearly 36 hectares of land for a plant to build theModel S °??? an all-electric sedan. According to Tesla's chief executive, the planned US$250 million facility shows Tesla aims to do more than simply produce eco-friendly status symbols for wealthy drivers.
'It is our intention to service the entire market,' CEO Ze'ev Drori said in an interview. 'We are not a niche player.'
While its US$60,000 price tag still clearly marks the Model S as a luxury vehicle, the five-seater will cost at least 45 percent less than the Tesla Roadster, which starts at US$109,000. The San Jose factory will also produce many more cars than the Roadster's planned run of 1,500 for the 2009 model year. The company wants to roll the first Model S off the San Jose assembly line during the fourth quarter of 2010 and expects to build 15,000 during its first year of production.
In the future, Tesla aspires to make electric vehicles much more affordable for consumers.
'We are going to work down the road on cars which will be substantially less expensive again,' Drori said.
Tesla's cars run on a huge lithium-ion battery pack that can be recharged by plugging an adapter cord into a wall socket. The company estimates the Roadster can travel 362 kilometers on a single 3.5-hour charge and expects similar results from the Model S.
Tesla had planned to build the Model S factory in New Mexico but announced in June that the plant would stay in California after Governor Arnold Schwarzenegger and state Treasurer Bill Lockyer worked out a tax break for the company.
Schwarzenegger is one of several celebrities, along with actors George Clooney and Kelsey Grammer, who the company says have all ordered Roadsters.
But with plans in the works for a new headquarters and factory, the Silicon Valley startup hopes it is taking the first step toward making electric cars a presence in the parking lots.
Tesla is awaiting final approval of a deal with the city of San Jose to lease nearly 36 hectares of land for a plant to build theModel S °??? an all-electric sedan. According to Tesla's chief executive, the planned US$250 million facility shows Tesla aims to do more than simply produce eco-friendly status symbols for wealthy drivers.
'It is our intention to service the entire market,' CEO Ze'ev Drori said in an interview. 'We are not a niche player.'
While its US$60,000 price tag still clearly marks the Model S as a luxury vehicle, the five-seater will cost at least 45 percent less than the Tesla Roadster, which starts at US$109,000. The San Jose factory will also produce many more cars than the Roadster's planned run of 1,500 for the 2009 model year. The company wants to roll the first Model S off the San Jose assembly line during the fourth quarter of 2010 and expects to build 15,000 during its first year of production.
In the future, Tesla aspires to make electric vehicles much more affordable for consumers.
'We are going to work down the road on cars which will be substantially less expensive again,' Drori said.
Tesla's cars run on a huge lithium-ion battery pack that can be recharged by plugging an adapter cord into a wall socket. The company estimates the Roadster can travel 362 kilometers on a single 3.5-hour charge and expects similar results from the Model S.
Tesla had planned to build the Model S factory in New Mexico but announced in June that the plant would stay in California after Governor Arnold Schwarzenegger and state Treasurer Bill Lockyer worked out a tax break for the company.
Schwarzenegger is one of several celebrities, along with actors George Clooney and Kelsey Grammer, who the company says have all ordered Roadsters.
