Tesla to open plant for Model S electric sedan
Tesla's Model S--a five-passenger, all-electric luxury sedan priced at about $60,00--will be manufactured in San Jose, Calif., site of Tesla's future headquarters.
Tesla Motors on Wednesday is expected to announce a planned $250 million investment in a facility in San Jose, Calif., to manufacture its Model S all-electric luxury sedan.
The company plans to break ground on the installation next summer and begin to deliver cars in late 2010, a company representative said Tuesday. It has scheduled a news conference for Wednesday to detail the move.
The Tesla Roadster, a $109,000 all-electric sports car which began shipping earlier this year, is made at a Lotus plant in the U.K.
The San Jose operation will house a factory, research, and development center, and become Tesla corporate headquarters, the representative said.
The plant will be capable of turning out 15,000 Model S sedans a year, which can be ramped up to 30,000 units, she added.
The Model S will be a five-person luxury car with a range of 240 miles per battery charge. The projected cost is about $60,000.
To pay for the operation, Tesla intends to raise $100 million in a series E round, which the company plans to announce in the coming months, according to the Tesla representative. It also expects to get a loan guarantee from the U.S. Department of Energy worth $150 million, she said.
People eager to buy a Tesla Roadster now can get on a waiting list, but the company has not started a waiting list for the Model S.
The city of San Jose is expected on Wednesday to list the incentives it offered Tesla to locate its headquarters there.