Filed under: EV/Plug-in, Tesla Motors, Green Daily
Tax breaks for Tesla, Model S sedan to get 225 miles, cost $60k
California Governor Arnold Schwarzenegger took to the podium today at Tesla's San Carlos, California facility to formally announce a new set of incentives for EV manufacturers to call Cali home. The crux of the address centered on the new CAEATFA program, approved last Wednesday, that exempts automakers from paying sales and use tax on manufacturing equipment used to build EVs. The program is expected to save automakers – and Tesla specifically – millions of dollars, and is largely in response to Tesla's original plan to produce its new sedan in New Mexico.Tesla used the Governor's visit as an opportunity to formally announce its new "multi-use sport sedan," currently codenamed Model S, which is estimated to get 225 miles on a single charge and to cost around $60,000. However, Tesla did not announce when the sedan would go on sale, nor would it give any indication about where the new EV would be produced.
UPDATE: Official press release pasted after the jump.
PRESS RELEASE:
Governor Schwarzenegger announces support for manufacturing future Tesla cars in California
San Carlos, CA – Ze'ev Drori, CEO of Tesla Motors, and Governor Schwarzenegger announced today at a press conference at Tesla Motors headquarters that Tesla's next product, a 4-door, 5-passenger sedan, will be manufactured at a facility in the state of California.
Previously it had been announced that the sedan manufacturing facility was planned for Albuquerque, New Mexico. After a thorough review of the program, Tesla decided that it would be highly advantageous to build manufacturing facilities in close proximity to the engineering and research and development functions in Tesla's San Carlos headquarters. Tesla's battery pack, a critical component of the Tesla Roadster, is currently manufactured in California. Final assembly of the Tesla Roadster is also currently in California.
Governor Schwarzenegger and the state of California also made it clear that they wanted to keep Tesla manufacturing in California. "Today's announcement is incredible news for California's economy and its environment. If California was a baseball team this would be like winning the first round draft pick and recruiting a player who is a perfect fit on our roster because Tesla Motors and its all-electric cars belong in California," enthused the Governor.
Last week, the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), approved a new program that exempts new Zero Emission Vehicle manufacturers from paying sales and use tax on the purchase of manufacturing equipment and will encourage ZEV manufacturing in California. Tesla will also be eligible for at least $1 million in Employment Training Panel Workforce Development Funds to train employees.
"These vehicles can play a big part in helping California successfully implement its groundbreaking laws to fight climate change," said State Treasurer Bill Lockyer, who chairs CAEATFA. "By offering this financial incentive, our goal is to ensure zero-emission vehicles realize their full potential in our state. In the bargain, we believe the policy will bolster our emerging green economy, create good-paying jobs and reduce our dependence on foreign oil. I'm very pleased the policy helped convince Tesla to build its high-performance electric cars in California."
Ze'ev Drori, President and CEO of Tesla Motors, remarked, "Tesla has achieved an extraordinary accomplishment. We are the only automobile company today delivering full performance battery-electric vehicles to our customers. Make no mistake - we are not a niche player with a car only for the rich and famous. As our agreement with the state so clearly demonstrates, we are building a high volume ZERO EMISSION VEHICLE, manufactured in California for mid-range family use. And we aren't going to stop there. We will continue on and build even more affordable cars. You are witnessing the debut of a new car company, a company unlike all others, a company with a disruptive technology, a company dedicated for the exclusive production of Zero Emission Vehicles."
Tesla's sedan, which is targeted for late 2010 production, will utilize Tesla Motors' leading electric powertrain design in a car that is both stylish, high performance, yet highly practical. The exact location of the manufacturing facility within California will be decided soon.
Reader Comments (Page 1 of 2)
why not the LS2LS7? 4:07PM (6/30/2008)
I want to be the first to say it...bullcrap.
225 mile sedan for $60K? Either it's far in the future or it's going to use lead-acid batteries.
Reply
CM 11:01PM (7/04/2008)
It's doable. The model S will use less expensive aluminum and steel instead of carbon fiber, and they may be using a lower cost per Kwh batteries as well. They are planning a greater production volume, allowing for some volume purchase discounts, and taking a smaller profit margin on each vehicle. They will be using some components from the Roadster that are already developed and tested, reducing development costs.
Mind you, they have a lot of challenges ahead, and competition from older companies as well.
Oil Man 08 9:47PM (9/18/2008)
First of All, the Tesla doesnt use Lead Acid batteries. It uses a combination of thousands of tiny Li-ion laptop batteries.
The vehicles only flaw is that if you buy a Tesla and have it shipped out of state, there is no place for getting it serviced. Matter of fact the only service stations are in California and they only have 3 locations.
They are getting incentives and help from the government but not every governor is the governator.
Dinosaurus 4:11PM (6/30/2008)
I think they are going light weight to get a longer range. This works for a car at higher price levels.
Reply
OhmExcited 4:18PM (6/30/2008)
They suggested Tesla would receive greater incentives if the manufacturing plant would be located in an Enterprise Zone. So, my guess is that it will be in Salinas Valley, Kings County, or Oakland.
Reply
david 4:28PM (6/30/2008)
If this is for real, I'm buying one!
Reply
Dave 4:33PM (6/30/2008)
Bullcrap @ #1?
Why? The Roadster battery is $35,000 in costs, if I remember correctly. Why would a $60,000 figure be so far off?
Reply
BlackbirdHighway 4:38PM (6/30/2008)
It's not going to be easy to produce the sedan for that price, but it's probably doable.
Here's purely speculative, back of the envelope calculations.
The Roadster costs $100,000. It's made in very small quantities, so bump up the production by a factor of 10 and knock of $15,000 for parts discounts. It also uses an all carbon fiber body. Switch to an aluminum body and knock off another $10,000.
The Roadsters are all hand built. Use an assembly line with some moderate automation and knock off another $10,000.
So that gets the car down to $65,000. Then the sedan is bigger than the Roadster, so add another $5000. Somewhere Tesla needs to cut another $10,000, I guess they have a plan.
Reply
Doug 5:06PM (6/30/2008)
"currently codenamed Model S, which is estimated to get 225 miles on a single charge"
Is the Tesla sedan actually called "Model S" or is it just a codename as you've reported here. Also where are you getting this 225 mile claim. I didn't hear the range mentioned in the announcement.
http://msmedia.dot.ca.gov/governor/20080630_tesla.asf
Reply
BlackbirdHighway 5:20PM (6/30/2008)
I think the 225 mile range was reported by engadget.com, so it's not official.
Tesla had previously stated that they would have different options for the Whitestar/Model S.
So maybe the $65,000 price only gets you a smaller range, maybe 150 miles, and you have to spend more to get the full 225 miles.
Reply
ddub 5:20PM (6/30/2008)
@Blackbird
I like how you come up with all these made up figures and than say how tesla is off $10k. LOL I'm thinking that Tesla's back of the envelope calculations have a little more substance than your back of the envelope calculations.
Reply
Damon Lavrinc 5:26PM (6/30/2008)
Doug -- The 225 mile quote was in the press release we received at the event, so it is official.
Reply
BlackbirdHighway 5:30PM (6/30/2008)
I only meant to show that it is not completely unreasonable to say that the price somehow achievable.
I believe the first comment was.. bullcrap.
I just wanted to make a case that it is difficult, but not bullcrap.
Yes, I would think Tesla would have a much better handle on the numbers than me! It's still fun to play guessing games.
Reply
dwf 5:31PM (6/30/2008)
"However, Tesla did not announce when the sedan would go on sale..."
The press release gave a target of late 2010 production.
Reply
Doug 5:36PM (6/30/2008)
Damon, can you post that press release here? The press release on the Tesla website makes no such mention.
http://www.teslamotors.com/media/press_room.php?id=915
Reply
Damon Lavrinc 5:42PM (6/30/2008)
Doug -- For some reason they didn't post the same press release online as what was handed out to us at Tesla. As soon as that goes live, I'll post a link.
Reply
OhmExcited 5:43PM (6/30/2008)
It's hard for me to believe that they will mass produce in 2010, when we haven't seen the vehicle yet even on paper and only a handful of Roadster have thus far been delivered.
Reply
OhmExcited 5:45PM (6/30/2008)
It's in the Gov's own site, so it must be official:
http://gov.ca.gov/index.php?/press-release/10038
"Tesla's Model S will be a fully electric, five passenger, multi-use sport sedan with a driving range of approximately 225 miles on one charge. The projected cost of the Model S is $60,000."
Reply
Wave54 5:45PM (6/30/2008)
Is it just me, or is all this hoopla a bit premature? After all, Tesla has only delivered 4 cars to date and there has been no long-term, independent testing of a roadster yet. It's still a great unknown from a new company.
What's the size of Model S? Being a 5-passenger sedan, I suppose it could be Civic/Cobalt size which would keep it light and less expensive to produce.
Reply
Doug 5:59PM (6/30/2008)
Ok, Thanks OhmExcited. They must have updated that press release on the Gov's page since that info wasn't there when I first read it. (They have also added photos and a link to the video.)
Wave54, it is perhaps a bit premature, but they didn't really give much information about the sedan. Intentionally, I'd guess. The timing of this announcement probably had more to do with the Governor's schedule than anything else.
Reply