What's pretty amazing is the Tesla is such a weighty car for the size. The Tesla weighs in at 2500 lbs — that's 500 lbs more than even a Lotus Exige S 240. That china's pretty strong if you ask us. [via Strada]

I had the opportunity to spend a few minutes behind the wheel as only the second journalist to get a chance driving the new Tesla Roadster Sport. The first was Dan Rather, which explains the smell of liniment, the REM on the radio and the Afghan robes in the trunk. But I digress. Let's talk about what makes this car merit the $28,000 premium over the original Tesla Roadster, which only manages 0-to-60 in 3.9 seconds.

For starters, there's some new under-the-trunk bits n' pieces that help boost power slightly. Specifically, there's a hand-wound stator and increased winding density for lower resistance and higher peak torque, lending it stronger acceleration.

Frankly, the GT-R can take its launch control and shove it. Because now that I've driven this I can say there isn't a better Game Boy out there than the Roadster Sport. Thanks to it being all-electric, all the torque's available the moment you drop the parking brake and press the button for drive (more on that shortly). So you're able to hit 60 MPH in a 3-point-something-second blink of an eye. Every time. And no you won't even void your warranty doing it.

But, like many American cars, it seems to drive at its best in a straight line. I found cornering to be tricky, with the cumbersome weight of the battery pack behind the seats doing confidence and communication no great shakes. But until I get a chance to play with it at some higher speeds than I was able to achieve on crowded New York City streets, I can't say for certain how it'll perform. Late last year I had the chance to drive the Lotus Exige S 240 (same chassis as the Tesla) on these same roads and it felt much more sprightly around the turns.

The ride was more comfortable than what we would have expected, taking many of the bumps and holes of the road with relative ease, yet the suspension still felt taught enough to take someplace a bit more befitting of a 3.7-second 0-to-60 time. Credit some of that to the increased mass of the batteries helping the unsprung to sprung weight ratio.

On the inside Tesla has finally made an effort to move away from the standard Lotus interior. Unfortunately, the cockpit's still not big enough for my 6'3" frame. I found myself wedged into uncomfortable position just to be able to see out the windshield. But that's the same problem I've had in every Lotus I've ever driven. The upgrades include a lockable glove compartment, new placement of the LCD info screen and an upgraded HVAC system. Additionally, the new model takes advantage of the single-stage transmission, doing away with the silly pretense of a stick shifter and replacing it with a button system for park, drive and reverse. It worked quite nicely on my short drive.

On the exterior, Tesla's found a way to drop enough carbon fiber up top to keep the weight of this porky pig down to a manageable 2,700 lb — the same as the regular Tesla Roadster and only 700 Lbs more than the Lotus Elise. But anyway, who cares what it looks like. Only one thing matters with this car – accelerating to 60 MPH in just 3.7 seconds in eerie silence. Oh, that and the $128,500 price tag.

We've said if you want an electric sports car but the Tesla Roadster isn't as fast or expensive as it could be, the Tesla Roadster Sport's for you. Here's the first live shots of what an extra $20K gets you.

Tesla promises their Roadster Sport will achieve a 0-to-60 time of 3.7 seconds, quicker than the 3.9 seconds the standard Roadster achieves. Power is boosted slightly thanks to a hand-wound stator and increased winding density, which we're guessing is the electric version of adding new headers and a freer-flowing exhaust.

Additionally, the Tesla is going to come with a set of ultra high performance tires sure to last a full three charges. Helping to keep the battery-laden Roadster Sport pointed in the right direction will be a revised suspension "tuned to the driver's preference" with adjustable dampers and anti-roll bars.

These renderings show most of the exterior changes will likely be minor, including "blacked-out" hood vents and black wheels. Subtle tweaks are probably best given the Tesla already looks like electric sex.

According to Tesla, this latest-and-greatest Roadster Sport will start arriving in June for $128,500.

We'll have more details from the event shortly including the first images of the 2010 Tesla Roadster.

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]

There's apparently two kinds of Tesla employees — current employees and former employees suing Tesla. Frankly, we're not surprised Eberhard's suing Musk and Tesla. We're more surprised that it took this long to happen especially given Musk's propensity for diarrhea-of-the-mouth types of comments. For the moment, the only thing we have to go off of is the PDF file from the California Superior Court — which you can see here.

In response, we're told Tesla plans to counter-sue Eberhard. That went over real well with Henrik Fisker — let's see how well it works here. All we know is we're just proud Eberhard quotes former-Valleywag Owen Thomas in his court filing. Gotta love the V-wag love! (Hat tip to Owen!)

Photo Credit: Yodel Anecdotal @ Flickr

For starters, Letterman gave a mea culpa and introduction to Lutz, calling him one of the "true greats in automotive design, marketing, sales and management...he's the man responsible for the Viper...a wonderful car. He's here with the Chevy Volt...and with any luck I'll get one of these babies for free."

Next, after the break, Letterman talked a little about the EV1 and how it's not from the planet Saturn. Then he wondered if building electric cars would have kept some dealers open. If it had, then damn, that's just one more reason to keep the internal combustion engine in our minds.

Then, after a Stephen Colbert interview, Dave made a bad pun about an electric car from Saturn running rings around...yeah...it was a bad joke. But, then "Maximum" Bob Lutz came out — looking quite dapper in his standard "old man business casual" threads.

Lutz started by walking Letterman through his C.V., then moved on to talking about marine aviation and owning two jets — probably not the best way to be seen as a company making cars for average A.I.G.-hatin' Americans.

Now we get into the meat n' potatoes of the interview. Letterman starts by asking whether there's light at the end of the tunnel for the American automakers. Lutz responds by saying that yes, they'll be restructuring and come out the end of the tunnel "leaner and lighter."

Letterman doesn't powder-puff it per se, but he's not exactly hard-hitting. First asking what people losing auto jobs should be expecting, allowing Lutz to throw down with "jobs returning in time." Still, he's able to pivot into asking Lutz about whether this was Detroit mis-management that got us here. Lutz responds by claiming there's more at play and lots of blame to go around — gas prices being a big part of it, but also that U.S. automakers built some bad cars from the 60s, 70s and into the 80s. He finishes his answer by saying the best way to combat that perception is by building better automobiles. We couldn't agree more.

Lutz addresses the issue of CAFE first by talking about building the type of vehicles Americans want to buy and how that's a shifting target thanks to fuel prices and American desire for buying the biggest vehicle they can for the cheapest price. Next, he responds with a hell of a good analogy that we've clipped and have over on the left. Something about how fat people won't get skinny just because you mandate clothing makers only making skinny clothes. Cue the commercial break.

And we're back with Letterman asking whether the EV1 would have kept the company in business. Lutz responds by saying "Sadly, no." He details the cost per vehicle was probably well over $100,000 per vehicle — and that it was a money-losing proposition.

Now let's get to the crux of the debate — Musk's Tesla versus the Chevy Volt. Lutz talks about batteries, price and practicality are the reasons for why it's a better fit for the American public. He even gives pricing details saying it'll cost $40,000, minus a $7,300 tax credit. Let's watch that now — plus the Chevy commercial at the break to see why Letterman's throwing softballs in his old age.

Back from the break and Lutz showing off the Volt and stating it meets regulations for all countries of any kind. And then my DVR crapped out on me. Let's rate the performance on a five star scale with five being the best.

Bob Lutz staying on message: ****
He's got to lose one star for the whole "I own two jets" thing in the beginning, but overall, a helluva job for a 77 1/2 years-old white Swiss-born man who works for GM. No "global warming is a crock" quotes for us to have fun with.

Dave Letterman's balls: *
Where did they go? Did he lose them in surgery a while back? Seriously — even if he was woefully ill-informed in his questions, we'd expect him to at least ask them, right?

It's not the first time these two companies have partnered. This year at the Detroit Auto Show the two automakers agreed to a minor partnership for Tesla to provide the powertrains for a test run of electric smart cars. Now, with Daimler scooping up 10% of the new company, both automakers are now claiming the alliance will "make electro mobility a reality."

We're not entirely sure we buy that, but if there's one thing Tesla needs, it's a cash influx. An equity stake would help, but we think this is merely a preamble to allow Daimler to determine the viability of both the company and the technology before they go after the whole shebang. (Hat tip to Alex!) [via CNNMoney]

Photo Credit: Energy Rogue

Musk, responding to a question posed by Lyle Dennis at GM-Volt on his feelings about the range-extender concept behind the Chevy Volt and why he's not considered it it any Tesla products, says:

We looked closely at a range extender architecture for Model S. It ends up costing about the same in vehicle unit cost, a lot more in R&D and a lot more in servicing. Also, although performance is ok when both battery and engine are active at the same time, it turns really bad when the battery runs out and an undersized engine is carrying all the dead weight of the pack. Essentially, a REV is neither fish nor fowl and ends up being worse (in our opinion) than either a gasoline or pure electric vehicle.

That'd be perfect, make it clear you looked at the idea for the Tesla Model S Sedan and dismissed it after a simple cost-vs-return analysis, then pivot into a positive statement about your product. Musk, who's not yet figured out the best way to go after the competition is by talking flowers, sunshine and honey publicly, saving the knife-and-dagger treatment for his PR team during after-party drinks with the press later on, should have just left it there. He didn't.

An important consideration that people without a technical background don't understand is that you can either have a high power or a high energy cell chemistry, but not both. Since the battery pack in a plug in hybrid like the Volt has to generate the same *power* as a much larger battery pack in a pure electric vehicle, it has to use a low energy cell chemistry.

So, is he saying GM's Volt engineering team lack a technical background or is he saying potential customers lack a technical background? Unknown. Either way, he probably should have left it with just the "REV doesn't make sense" comment. Lesson learned? [GM-Volt]

Tesla claims the Model S sedan will be produced at a rate of 20,000 units per year, with an expected 3rd quarter of 2011 start of production and an expectation of mid-2012 for when they hope to hit that 20,000-per-year number.

The Tesla Model S Sedan will supposedly have a 300 mile range from its floor pan-located, easily removable battery pack which Tesla claims will have a quick-charged capability allowing it to partially charge in just 45 minutes. The company is considering renting customers a long range battery pack for long trips. The regular batteries are available for lease and are expected to last from 7 to 10 years depending on use, but expect closer to 10 for normal use. The entire car will be covered under a warranty, the length of which is expected to be between 3 and 4 years.

The interior features 2 LCD screens, one displaying the gauges and one mounted centrally featuring a full touch screen. Seating has five seats facing forward with two seats folded down into the trunk space that flip upward and face out the back of the Model S. We don't have pictures of it, but Elon Musk tells us it's true so it must be.

Sport and AWD models are being planned, but the stock model can run 0-60 MPH in 5.5 seconds using its single-speed transmission.

The Tesla Model S will be built in Southern California, while the drive train is manufactured in San Jose. Although we initially believed they might be using a Mercedes platform, but we're now told personally by Tesla's Elon Musk the platform is their own design and they plan on manufacturing it themselves. Where they'll come up with the tens if not hundreds of millions of dollars necessary to accomplish that is anyone's guess.

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 —