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2011 Tesla Model S Electric Sedan To Be Produced In Silicon Valley

Priced around $60,000, capable of 240 miles on a single charge and producing no emissions, the Tesla Model S sedan will begin rolling off its new assembly line in California in late 2010. That’s only shortly after Chevy Volt’s scheduled mid 2010 production start date. Unlike the plug in Volt, the Model S will be fully electric. Tesla’s new factory will be located in San Jose and employ approximately 1,000 workers. Construction is expected to begin next summer. The Tesla Roadster will continue to be produced in England by Lotus, making the Model S Tesla’s first American-made vehicle. Full details follow the jump.

Tesla to produce all-electric luxury sedan in California

Tesla to assemble all-electric Model S luxury sedan and build corporate campus in heart of Silicon Valley

SAN JOSE, Calif.—(BUSINESS WIRE)— Tesla Motors Inc. plans to build a $250 million facility to manufacture a zero-emission luxury sedan in the heart of Silicon Valley. The nation’s leading all-electric car company will also relocate its corporate headquarters and research and development efforts to a consolidated campus in San Jose, Calif.

Tesla President and CEO Ze'ev Drori announced that construction on the 89-acre site would begin in the summer of 2009. When fully operational, the facility will employ approximately 1,000 workers.

Tesla selected San Jose in part because the region already enjoys a high concentration of highly skilled engineers and support infrastructure. The factory – expected to achieve gold certification from U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) – will be 20 miles from the current headquarters in San Carlos, minimizing inconvenience for more than 250 employees.

“Big deals like this happen when both parties have something significant to gain,” said Drori, who praised San Jose Mayor Chuck Reed’s 15-year “Green Vision” job-creation initiative. “Locating Tesla’s headquarters, manufacturing and R&D in San Jose will allow us to proceed with minimum disruptions and virtually no dislocations.”

Model S is Tesla’s zero-emission, five-passenger luxury sedan powered by a lithium-ion battery pack. It is expected to have a base price of about $60,000 and get about 240 miles per charge with exceptional performance. The first sedans will likely roll off the assembly line in late 2010.

Tesla’s first production vehicle is the Roadster, a zero-emission, all-electric, two-seat sports car. On sale now in the United States and Europe, the Roadster is assembled at a Group Lotus PLC factory in Hethel, U.K. Tesla has no plans to move Roadster production.

Tesla, which has delivered about 30 Roadsters so far, announced last week it was ramping up production amid scorching demand. About 1,200 people have put down deposits to reserve a Roadster.

Tesla also announced recently a string of high-profile hires with deep industry expertise. Executive Vice President Mike Donoughe, who spent 24 years at Chrysler, is overseeing Tesla’s Model S and Roadster programs. Chief Financial Officer Deepak Ahuja was formerly controller at Ford. Chief Designer Franz von Holzhausen, former director of design for Mazda North America, is designing the Model S.

“Tesla has amazing momentum right now. The excitement within the company is palpable,” said Tesla Product Architect and Chairman Elon Musk. “The company has clearly taken production of all-electric vehicles to the next level, and the Model S assembly plant will dramatically accelerate our growth.”


Send an email to Wes Siler, the author of this post, at wes@jalopnik.com.


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