SAN FRANCISCO (CBS 5 / AP / BCN) ― When Tesla Motors Inc. began taking orders last year for its all-electric sports car, celebrities lined up to purchase the sleek zero-emission vehicle with the six-digit sticker price.

But with plans in the works for a new headquarters and factory, the Silicon Valley startup hopes it's taking the first step toward making electric cars a presence in the driveways of average Americans.

Standing in front of two Tesla Motors, Inc. roadsters, San Jose Mayor Chuck Reed announced that the high-performance electric car company will build its headquarters and a manufacturing facility on an 89-acre lot in San Jose.

According to Tesla's chief executive, the planned $250 million facility shows Tesla aims to do more than simply produce eco-friendly status symbols for wealthy drivers.

"It is our intention to service the entire market," CEO Ze'ev Drori said in an interview with The Associated Press. "We are not a niche player."

While its electric sedan's $60,000 price tag still clearly marks the Model S as a luxury vehicle, the five-seater will cost at least 45 percent less than the Tesla Roadster, which starts at $109,000.

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, Drori said.

In the future, Tesla aspires to make electric vehicles that a much broader base of consumers can afford.

"We are going to work down the road on cars which will be substantially less expensive again," Drori said.

Tesla's cars run on a huge 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.

Tesla had planned to build the Model S factory in New Mexico but announced in June that the plant would stay in California after Gov. Arnold Schwarzenegger and state Treasurer Bill Lockyer worked out a tax break for the company. Schwarzenegger is one of several celebrities, along with actors George Clooney and Kelsey Grammer, who the company says have all ordered Roadsters.

Tesla will begin producing its new luxury five-seat sedan in the Silicon Valley by 2010, Mayor Reed said.

The company will bring new jobs in green technology, which furthers San Jose's goal of attracting such companies and creating 25,000 clean-tech jobs in the next 15 years.

"I am here to give the green light to Tesla," Reed said.

Ze'ev Drori, president and CEO of the company, called the Silicon
Valley the "epicenter of the clean technology revolution" and said his company is happy to be producing its newest line of cars in California.

Tesla Motors was incorporated in 2003 and is now based in San Carlos. The company has facilities in England and Taiwan, and a technical research facility in Michigan. It currently produces a two-seat roadster.

San Jose Mayor Chuck Reed said Tesla's move will bolster the city's goal of creating 25,000 jobs in the growing "clean technology" sector over the next 15 years. 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, he said.

"We want to be a world-class center of clean-tech innovation, and this fits into our strategy to do that," Reed said. "We hope to be the home of the electric car like Detroit was for the internal-combustion car."

 

Yeah, if you drive El Camino towards Redwood City a little ways past Palo Alto Medical Foundation but before Menlo Park there is a Tesla Dealership thats getting ready to open.

 

As cool as this is I'm more interested in Shai Agassi's Better Place - http://www.betterplace.com/ . Operating much like a cell phone company seems to be a very good business model that would actually allow a lot of auto makers to sell electric cars a lot faster than individual development. Basically the car makers make the cars and Better Place provides batteries and power. Very interesting.

 

At the very least, this ought to provide SJ with some new jobs, which would be very welcome, though that won't happen for some time.

 

Tesla in San Carlos has tons of jorb openings. None I could do though sadly.

 

but right now, to me tesla is still VAPORWARE!!!!!!!

dont care if they are demoing cars. i want to see the first 10 or so cars SOLD to actual customers...

 

Well, the Tesla dealer in Palo Alto near my work is just down the street from the Ferrari/Lambo/Bently dealer(that has been selling cars for many years). I have a feeling money is a plenty and from the looks of the packed Tesla showroom, there is much interest.

 

they have lots of money (from investors and customers) and lots of interest.

but has anyone seen one being driver on a daily basis BY A CUSTOMER?

 

Yes. I see a couple of them nearly every day, but I live in San Carlos. I have been seeing them around for a while. Also, nearly every weekend I end up out at Alice's on 84/35 and I see at least 2 or 3 there every time. Different ones. I am really surprised how many I see around - there's an orange one, a maroon one and a black/silver one I see pretty regularly.

 

There's already a ton on back order. Customers are just waiting for production to catch up. Right now the batteries are being assembled by hand as well as many other parts of the car.

They're pushing out cars as fast as they can.

 

where did you get that cool pic?

 

http://images.google.com/images?hl=e...-8&sa=N&tab=wi

Better run outside, I can hear your car overheating again!

 

HAHA

The guy in the second car up in the passenger seat....haha

Move on bud....this car was not built for you!

 

I drove next to one on Bascom Ave in Campbell last Sunday morning. It was driven by a lady in her 50's. She was scooting along pretty fast.

 

awesome. I cannot wait