Tesla Set to Electrify Americas Auto Industry



Lets face it, American automakers are struggling because of a lack of innovation and foresight of consumer demand for energy efficient cars. There is however one automaker shaking things up, Tesla Motors of San Carlos, California. Tesla gained its notoriety with the groundbreaking Roadster, an all-electric sports car with 248 hp, pushing it from 0 to 60 in 3.9 seconds and can go 244 miles per charge. However, the Roadster’s high price tag, upwards of $110, 000 USD, placed in out of reach for most consumers. This is about to change, if Tesla has its way.

Tesla announced recently that it’s on the verge of receiving $450 million from Department of Energy loans designed for retooling the auto industry and supporting vehicles with renewable energy. Although Tesla showed financial strains from its rapid growth in 2008, the company stands to gain much from policies of the Obama administration that will focus heavily on energy efficiency.

The group plans on utilizing the funds to build to build a $350 million production plant for a new sedan dubbed the Model S. Another $100 million will go towards expanding its battery supply business, which promises rapid growth, thanks to its partnership with Daimler to supply batteries for an electric smart car.

The Model S promises to position the group for a foray into mass production consumer vehicles. The Model S will have a base price of $60,000, however; it could cost less than $50,000 when you factor in tax breaks on electric cars plus a $10,000 price break that Tesla has promised its early adopters. While actual performance figures are yet to be determined, Tesla promises that the car will achieve 240 miles per charge and go from 0 to 60 in less than 6 seconds.

A prototype of the Model S is scheduled for a mid March premier.