Market Snapshot


Drivers taking a ride in Tesla's Roadsters.

Tesla Motors has announced plans to build a $250 million facility in San Jose, California, where production will begin on a luxury electric sedan with a price tag of $60,000.  

According to, Tesla has a deal with the city of San Jose to lease nearly 90 acres of city-owned land for a new headquarters and a plant to build the Model S.

Tesla’s chief executive reveals that the planned facility shows that Tesla aims to do more than simply produce eco-friendly status symbols for wealthy drivers. Fox News says the $60,000 Model S will cost at least 45% less than the Tesla Roadster, an electric sports car which starts at $109,000 and carries a waiting list of celebrities.  

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.

Tesla's cars run on a large lithium-ion battery pack that can be recharged by plugging an adapter cord into a wall socket. The company estimates the Roadster can travel 225 miles on a single 3.5-hour charge and expects similar results from the Model S.

Although Tesla initially planned to build its facility in New Mexico, it decided to stay in California after Governor Arnold Schwarzenegger and state Treasurer Bill Lockyer granted a tax break for the company. According to Tesla, the new factory and corporate headquarters will create about 1,000 jobs. As part of the agreement to bring Tesla to San Jose, the company won't have to pay to lease the land for the first 10 years.