Tesla Motors on Thursday took the wraps off its widely watched Model S, the lower-cost successor to its Roadster, giving a first glimpse of the all electric sedan and a hint of more cars to come.
Tesla's Model S was unveiled at the Hawthorne, California, rocket site of Mr. Musk’s other startup, Space Exploration Technologies, or SpaceX, where he announced the company is now taking orders for the car.
“Tesla is relentlessly driving down the cost of electric vehicle technology, and this is just the first of many mainstream cars we’re developing,” Mr. Musk said in a statement.
The lower-cost Model S, priced at $49,000 after a $7,500 federal tax credit, is hardly a budget-minded choice. Yet it comes as consumers cut back on luxury cars and the company clearly needs something more affordable than a $109,00 Roadster. Tesla has managed, despite delays, to deliver nearly 300 of the all electric Roadsters, which boast acceleration of 0 to 60 miles per hour in 3.9 seconds, and has about 1,000 people on its waiting list. Tesla said the Model S will go from 0 to 60 in just under six seconds.
Tesla is betting on battery performance making the difference. The company promises Model S cars can do 300 miles per charge compared with the Roadsters’ 244 miles per charge. The Model S will have an onboard charger that could allow the car to be charged up in as little as 45 minutes. Also, the electric vehicle’s battery has been given an easy access mount to the floor with the intention for it to be quickly replaced by a battery station.
The San Carlos, California, automaker said that its floor-mounted battery frees up additional storage, allowing for a second trunk in the front. Tesla claims this boosts its cargo space beyond any sedan on the market and most SUVs.
Tesla ambitions could go as planned, especially if gets some federal funds. The company has applied for a $350 million loan from the Department of Energy’s Advanced Technology Vehicle Manufacturing Program to build its Model S. The Model S is expected to go into production in late 2011.
The automaker “believes it is close to receiving $350 million,” the company said in the statement.
Tesla is backed by VantagePoint Venture Partners, Draper Fisher Jurvetson, JP Morgan's Bay Area Equity Fund, Google founders Larry Page and Sergey Brin, and Mr. Musk, among others.
Mr. Musk founded Zip2, which sold to Compaq for over $300 million, and later helped start PayPal, which sold to eBay for $1.5 billion. He has pumped $100 million of his own money into his SpaceX commercial space travel startup.