Along with airing pretty much all of Eberhard's dirty laundry, refuting from his perception, all of the claims in the lawsuit, Musk also makes Eberhard look like something of an incompetent nincompoop. There are some real stingers buried in the enormous writing, complete with emails copied in to back up Musk's story, some of our favorites include:

There were several smaller items I suggested, such as the touchpad door latch that Eberhard tries to use as an excuse for why it cost over $140M to bring the Roadster to market instead of the $25M that he estimated in the 2004 business plan. That would have to be one hell of door latch! The $140M excludes any costs associated with the Model S."

and this not-so-subtle slap:

"All he had was a business plan to commercialize the AC Propulsion Tzero electric sports car concept. Three years later, when Eberhard was asked to leave Tesla, most of the work that he had been paid to do had to be redone."

Ouch.

In any case, Musk goes on to say over the last few years of work, the total bill of materials price which was pegged around $140k when Eberhard was running the show has been reduced to around $80k. Along with improvements to the supply chain, the optional Tesla Roadster Sport and a run rate around 20-30 cars a week, Musk is expecting to see the company turn the corner and see profitability next month.

It's a bit of a long read, but if you want a look at all of Tesla's dirty laundry being aired in pretty much one place and understand a lot of the history behind the car and its delays, it's well worth the time. [Tesla]

So it's nice that Musk has such lofty goals. Frankly, it's always been his forte. He leaves the "how to get there" to other, more little people. Like with an idea to build 100,000 cars per year by buying an idled assembly plant from a U.S. automaker. He'll leave the whole "design a mid-size sedan for it to build" to other people. Musk's an "idea man," ya know. And for an "idea man" the reality of building 100,000 mid-size sedans is kind of like trying to build a "kabillion" mid-size sedans — they're both impossible numbers when you don't even have a working design.

He also thinks gas should cost $10 a gallon. Hmm, we wonder why. Keep in mind it's not that we disagree with Musk, we just happen to believe it's also probably the price-point in which a $100,000 Tesla roadster becomes a good investment versus a sports car with similar performance. [CNet, Twitter]

The yet-to-be-fully-unveiled Model S, with its all-electric powertrain, will surely garner more green-cred than the Karma (especially since Fisker is using a dirty old GM four cylinder) and a price tag of $87,900. Never mind the Karma has an unlimited range — the Model S is all-electric and cheaper!

The original projected price for the Model S was $60,000 but, after the Federal tax credit of $7,500, the four door Model S will cost buyers a mere $49,900. This news will undoubtedly charge the batteries of any would-be buyers, though we suggest they lock in their orders early . [Tesla via Carscoop]

The company is once again building roadsters and may have its run of 2008 models built and sold before the end of 2009, meaning they maybe have room and capacity for building the Model S. Of course, none of this will likely happen without government funding or some other large funding source, which is a tricky bet. Hopefully, the company will overcome its recent stumbles because this sedan, despite its possibly vapory qualities, looks decent. It's got a touch of Quattroporte but smaller.

[Tesla via Auto Blog]

This latest announcement brings news of the Tesla Model S, the company's long-planned affordable electric sedan, which will get a prototype rollout on March 26th. Helping keep the development, and therefore final, cost of the Model S down, Musk announced some funds from the company's $350 million loan request to the Department of Energy to be released in the next six months.

What he didn't say is that their application was approved. He didn't specifically say how much, if any, money is coming to Tesla. We've contacted Tesla for a comment so we'll know for sure whether this vague statement of some funds going somewhere was merely a rhetorical miscue or an actual attempt to mislead people as to the future financial state of the company.

UPDATE: We've gotten an update from a Tesla spokesperson confirming they have not received funding, though they're in the later stages of applying. No one has yet to receive an approval, so it isn't as if they have been left out. According to Tesla's Rachel Konrad: "It's important to note that we have NOT received final confirmation from the DOE that we will receive funds. None of the 75 applications have received final approval. However, we are in the later stages of the loan application process, where the DOE is evaluating Tesla's financial viability and technical merits. The DOE is doing its due diligence, and we are very optimistic about a relatively expedient timeline for disbursal of funds."

For future customers, Musk further announced the opening of shops in Chicago and London's Knightsbridge district, with more stores coming in Manhattan, Miami, Seattle and Munich. The news from Tesla has been mixed lately, as the company has had to deal with the Carpocalypse, layoffs, lost court cases and other assorted bad news. On the other hand, the company has also announced strategic partnerships and new models.

Musk once again reiterated his belief the company will be profitable by mid-year, which seems like a more reasonable statement when you raise the price on already ordered Roadsters. Full news in the press release below the jump.

Tesla to be Profitable by Mid Year

The $40M financing round completed in December was twice the amount Tesla needed to reach profitability. Moving forward two months later, we remain on track with our cost reductions and production ramp, so it appears highly likely that Tesla will meet the goal promised to those investors of becoming profitable by mid year.

The main reason for this confidence is that Tesla is already in the fortunate position of being sold out until early November, something few automakers can claim, and will soon be sold out of all 2009 production. While we have had some cancellations due to buyers experiencing personal financial difficulties, new orders continue to flow in every week from the United States and Europe. We have now produced more than 200 Roadsters for customers and there are more than 1,000 customers still awaiting delivery.

Due to our order backlog, it seems that owning a Roadster can be a good investment. Last September, as the financial and real estate markets began crashing, a Roadster was sold at the Sonoma Paradiso in California wine country for $160,000, well above the current list price of $109,000. Many Roadster owners who have taken delivery of their cars have already decided to purchase a second Roadster or Roadster Sport because they like the first one so much.

The continued strong demand is driven by the fact that the Tesla Roadster has no direct competitors. It is faster than almost any sports car on the market (our Roadster beat a Porsche GT3 on the Top Gear test track) and yet uses less energy and has a smaller carbon footprint than a Toyota Prius, even if you assume the worst possible case where all electricity comes from coal.

I expect sales demand to strengthen further as this awareness grows. After all, what's the point of driving another exotic sports car when it is slower than a Tesla and damages the environment? Already, the Tesla Roadster is the car of choice among the technology, business and Hollywood A lists – this year's Academy Awards will be a lineup of Teslas – and we have never had to give a discount to anyone.

Many customers also appreciate the fact that profit from their purchase goes towards helping Tesla develop more affordable, mass market electric cars. The same cannot be said for those who buy gas-guzzling sports cars from other automakers.

And owners aren't the only ones impressed with the Roadster. Road & Track was the first auto enthusiast magazine to perform third-party, instrumented testing on the Roadster; they were "pleased to see its extravagant claims confirmed." The Washington Post's Warren Brown gushed, "Wheeeeeee! If this is the future of the automobile, I want it." Dan Neil of the Los Angeles Times had perhaps the most colorful description we've seen to describe the Roadster's scorching acceleration: "God has grabbed me by the jockstrap and fired me off his thumb, rubber band-style. Wow." And we've also had a torrent of reviews in Europe, where deliveries begin this summer – including a Le Monde story with our favorite headline: "Le chic électrique."

Unveiling the Model S and DOE funding

On March 26th, at the Tesla design studio located within the SpaceX rocket factory, we will unveil a street-drivable prototype of the Model S four door sedan. Our objective with the Model S was to create one of the most functional, intuitive and beautiful vehicles on the road. Tesla Roadster customers and select VIPs invited to the event will have an opportunity to judge for themselves firsthand whether we have succeeded.

Regarding funding, I am excited to report that the Department of Energy informed Tesla last week that they expect to disburse funds from our $350M Model S loan application within four to five months. The Obama administration has thankfully made it a top priority to move quickly on the Advanced Technology Vehicles Manufacturing loan program, as this will both generate high quality jobs in the near term and lay the groundwork for a better environment in the future.

This will keep us on track for production to start in 2011. As a gesture of gratitude for their early support, Roadster owners will receive a $10,000 discount off the price of the Model S Signature series and automatically be first in line for the sedan.

Daimler Partnership

We announced last month at the Detroit auto show that we have been working with Daimler (maker of Mercedes) for over a year to create an electric version of the Smart car. Daimler has contracted with Tesla to build the battery packs and chargers for an initial run of 1,000 cars. Pending the results of that test fleet, the relationship could expand to tens of thousands of cars per year.

This is a very significant endorsement of both Tesla's technology and our financial strength by one of the world's most respected automotive companies. Daimler would not feel comfortable depending on us for this program if they felt that either our technology was easily replicated or that we were in financial danger.

Daimler was the first company to commercialize the internal combustion engine and has become a benchmark for automotive quality and reliability. It is an honor that they chose to work with Tesla after a thorough investigation of other options. The deal is likely to be the first in a series of strategic partnerships between Tesla and other auto manufacturers to engineer and produce electric cars.

My goal for Tesla from the beginning was to do whatever we can to help end the world's addiction to oil. We'll do that by making cars directly, helping other automakers develop cars, and serving as an example to the rest of the industry. Although the Roadster is still the only highway capable production electric car for sale in the United States, it was very encouraging to see that the central theme of the Detroit auto show this year was electric transportation. J

New Tesla Sales & Service Centers to Open

We have reached agreement on Tesla store leases in Chicago and London's Knightsbridge district, and we are close to finalizing locations in Manhattan, Miami, Seattle and Munich. All six facilities will open this year, and in the following months we'll provide details about individual store opening parties. These new stores will offer prospective customers the chance to see and drive the Roadster in person – and they underscore Tesla's commitment to looking at the auto industry with fresh eyes. Unlike traditional franchise dealerships, Tesla owns its stores and controls the customer experience. We think you'll agree that our stores are a refreshing change from the way most people have bought cars for the last 50 years.

Roadster Sport

Tesla is now taking orders for the Roadster Sport, an even higher performance car that does 0 to 60 mph in 3.7 seconds. It comes with a hand-wound stator and increased winding density for lower resistance and higher peak torque.

The tires are upgraded to Yokohama Ultra High Performance and the suspension features adjustable dampers and anti-roll bars tuned to the driver's preference – allowing for both softer and firmer rides than the standard Roadster. Deliveries are expected to begin in late June.

Upgraded Roadster Interior and Other Options

Tesla will soon offer an Executive Leather Interior that raises the level of luxury in the Roadster's cabin. We are also offering a Clear Carbon Fiber Exterior Package to add an additional level of sportiness and highlight the lightweight material that makes up the Roadster's body. Currently, the only exterior clear carbon fiber touch on the base model is the roll bar cover – but many customers and fans have asked if we could reveal more of this exotic, braided material. These packages will be available starting in June.

Battery Replacement Program

One of the top questions customers ask about the Roadster is, "How long will the battery last and what will it cost to replace?" Tesla engineers have determined that a Tesla battery pack should last approximately seven years or over 100,000 miles under normal use.

Customers may pay $12,000, €10,000 or £9,000 up front and in return receive a replacement battery pack after seven years. Customers will also have the option of replacing the pack earlier at a premium or later for a partial refund. With the low production volume of the Tesla Roadster, the current replacement price of the pack is almost three times that number. The main reason for the relatively low cost up front — and why this is a smart purchase — is that we are arbitraging the relative cost of capital between Tesla and our typical customer.

Extended Warranty to Double Standard Period

Many customers have also asked to purchase an extended warranty. We now offer a doubling of the standard warranty, which means an additional 3 years and 36,000 miles or 60,000 kilometers, for $5,000, €4,000 or £3,800.

This covers everything on the car except the battery pack. Should the motor, power electronics, HVAC or any other major system need to be replaced, this will be money well spent, and it provides peace of mind to many customers.

Thanks for your support!

— Elon —

Sorry boys, the up-skirt shots of future product like the Tesla Model S only work when you're actually going to release the future product. Just sayin'. [World Car Fans]

We're hearing that approximately 90 Tesla employees, or 90% of the Detroit office, was simply let go, and the remaining employees have to make their way to the San Carlos headquarters with no moving costs covered, no increase in salary and no help getting rid of their old homes. Fortunately, the real estate market in Detroit is red-hot, and the cost of living is about the same in San Carlos.... right?

The relevant section from the Tesla pink slip blog-post-of-death below:

There will also be some headcount reduction due to consolidation of operations. In anticipation of moving vehicle engineering to our new HQ in San Carlos, we are ramping down and will close our Rochester Hills office near Detroit. Good communication, tightly knit engineering and a common company culture are of paramount importance as Tesla grows.

That's right folks, "good communication" is key.

[Photo: James Nielsen/Getty Images]

Tesla is absolutely committed to development of our next generation vehicle, to be unveiled early next year. However, we are going to reduce activity on detailed production engineering, tooling and commitments to suppliers until our Department of Energy loan guarantee becomes effective.

Our translation below the jump.

If they cut back on production engineering, tooling and commitments to suppliers, they are essentially saying they'll show off their prototype but will make no more production plans until they get a federal loan guarantee for their plant in San Jose. This, like everything, is being blamed on the Financiapocalypse.

This actually follows up on some news we heard way back in January that the Whitestar/Model S was toast, despite having seen the Model S mule. Look for a prototype soon and, depending on the market, a production car at some point in the future... maybe. For more on the Valley implications of this check out Valleywag's coverage

[Souce: Tesla Motors]

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.”

Jalopnik Snap Judgment: According to Autocar, we should expect to see the Model S sedan in 2010, with the SUV and a four-door coupe arriving around 2015. The word from Tesla is less encouraging, however: The company is hoping to launch the sedan after construction of its new California factory is completed, and they describe the design as “ninety percent” complete. Knowing that the "devil is in the details" — details being at least the last 10% of the design process — and that starting up a factory isn't without its hiccups, we're afraid the Model S may take a little longer to get to market, and any other variants even longer. Of course, with its recent new hires, Tesla could surprise us all. But, although we're hopeful, we've also seen Tesla miss past time deadlines — and continue to miss current deadlines. [Autocar.uk]

And how much does this reek of a PR stunt? What automaker parks a mule for their new anti-gas secret weapon at an abandoned building that will some day be a store for the automaker? Can someone say a set-up? [TeslaMotorsClub via Autoblog Green]

Governor Schwarzenegger Celebrates Clean Technology Investment in California, Welcomes Tesla Motors Production to California

Governor Arnold Schwarzenegger today joined with State Treasurer Bill Lockyer and Tesla Motors representatives to announce Tesla's decision to locate its new manufacturing facility for its Model S, Tesla's second-generation vehicle, in California. As part of the state's ongoing commitment to clean technology, the Governor also announced a new program that waives the sales tax on investment in new manufacturing equipment for Zero Emission Vehicles (ZEVs). This program was developed in conjunction with the State Treasurer and the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA).

"Today's announcement is great news for California, our economy and our environment. We want these cutting-edge companies not to just start in California and do their research and development here-we want them to build in California," Governor Schwarzenegger said.

"Tesla's announcement today is just one of many we will celebrate as we implement AB 32 and reach our greenhouse gas emissions reduction goals. I have always said that we must protect our economy and our environment at the same time, and today it is clear that we are once again demonstrating to the world how to do that."

California's green-friendly atmosphere is encouraging clean businesses from around the world to invest in California, stimulating our economy and contributing to the fight against global warming. According to the California Green Innovation Index by Next10, a non-partisan research organization, in 2006 venture capital investment in energy technology companies in California was just shy of $1 billion, more than double the total from 2005.

Last Thursday, the California Air Resources Board (CARB) released its AB 32 Draft Scoping Plan, the market-based roadmap which will guide California toward its greenhouse gas emissions reduction goals. This roadmap will motivate companies like Tesla to come to California and bring their innovation, reduced emissions and thousands of jobs with them.

Last Wednesday, CAEATFA approved a new program that exempts new ZEV manufacturers from paying sales and use tax on the purchase of manufacturing equipment to encourage ZEV manufacturing in California. For Tesla, these incentives will mean millions of dollars in savings when the company invests in building their new plant in California. And if they choose a city that is in an Enterprise Zone, they will save millions more. Tesla will also be eligible for at least $1 million in Employment Training Panel Workforce Development Funds to train employees.

Tesla's Model S will be a fully electric, five passenger, multi-use sport sedan with a driving range of approximately 225 miles on one charge. The projected cost of the Model S is $60,000.

"These vehicles can play a big part in helping California successfully implement its groundbreaking laws to fight climate change," said State Treasurer Bill Lockyer, who chairs CAEATFA. "By offering this financial incentive, our goal is to ensure zero-emission vehicles realize their full potential in our state. In the bargain, we believe the policy will bolster our emerging green economy, create good-paying jobs and reduce our dependence on foreign oil. I'm very pleased the policy helped convince Tesla to build its high-performance electric cars in California."

In addition, California's new Alternative and Renewable Fuel and Vehicles Technology Program, AB 118 by Speaker Fabian Nunez (D-Los Angeles), which the Governor signed into law last year, established a new program that will generate more than $100 million annually for development of new technologies, vehicles and fuels. Funding is expected to be available in March 2009.

California's ZEV program is the world's only enforceable requirement for the development and production of zero-emission vehicles. The following state and federal programs support ZEVs:

* Alternative Fuel Vehicle Incentive Program: Offers up to $5,000 for the purchase or lease of alternative fuel vehicles. Battery electric vehicles, such as a Tesla, typically receive the full $5,000 grant.
* High Occupancy Vehicle (HOV) Lane Access: Vehicles are eligible to receive the white HOV lane access sticker allowing them to be driven in the HOV lane with only one occupant. This white sticker is different from the yellow stickers issued to hybrid vehicles in that their availability is not capped at a specified number of vehicles.
* California's Environmental Performance Label: Requires all new cars starting in 2009 to display a sticker to inform consumers about the smog forming and greenhouse gas emissions of each vehicle. Vehicles are scored on a scale of 1 to 10, with 10 being the best. ZEVs will receive a score of 10 for both smog forming and greenhouse gas emissions.
* Federal Tax Incentives for Recharging Stations: A federal tax deduction of up to $100,000 per location is available for qualified electric vehicle recharging property used in a trade or business.
* Local Community Programs: Offers public charging, free parking and supportive building codes for installation of home charging units.
* Low Carbon Fuel Standard: Requires fuel providers to reduce the carbon intensity of transportation fuels sold in California. This first-of-its-kind standard firmly establishes sustainable demand for lower-carbon fuels without favoring one fuel over another. To start, the standard will reduce the carbon intensity of California's passenger vehicle fuels by at least 10 percent by 2020 and more thereafter.