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US: Tesla set to announce US facility

By just-auto.com editorial team | 17 September 2008

Tesla Motors is expected to announce a planned US$250m 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.

The Tesla Roadster is assembled by Lotus in the UK.

The San Jose operation is expected to house a factory, an R&D centre, and become Tesla corporate headquarters.

The plant will be capable of turning out 15,000 Model S sedans a year, which can be ramped up to 30,000 units.

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.

The decision to locate production capacity in the US is thought to have been influenced by high international shipping costs and the weak dollar, while the city of San Jose has also offered incentives to locate there.