No longer wanting to be dubbed a “niche player”, Tesla Motors today announced the production of a mid-range, family-oriented sedan that will utilize the company’s high performance electric powertrain design. Issued in a joint statement with Governor Schwarzenegger, the company has confirmed its plans to build the new vehicle in a (as yet built) state of the art facility in California. The move is regarded as a boon to the nation’s lagging automotive industry, the California state economy, and a critical effort to reduce dependence on foreign oil.

Seemingly, the only loser in this situation is the state of New Mexico who lost its $7 million bid when California upped the ante last week - approving a program that exempts new Zero Emission Vehicle manufacturers from paying sales and use tax on the purchase of manufacturing equipment. And to add icing on the cake, Tesla will be eligible for at least $1 million in Employment Training Panel Workforce Development Funds. It probably doesn’t hurt that Arnie was one of the first to get behind the wheel of the Tesla Roadster.



While no images have been released yet, the 4-door, 5-passenger sedan is targeted for a late 2010 production. While the initial Roadster is priced at over $100k, the magnanimous manufacturer is touting its ability to produce a stylish, high volume, high performance electric vehicle at a more reasonable price of $60k. Somehow, I doubt the sedan will be able to hit 0 to 60 mph in 3.9 seconds. But, with gas prices soaring near $5 a gallon and the promise of a sleeker silhouette than, say, the Prius...sign me up!

Click here to see a video of the official press announcement from Governor Arnold Schwarzenegger and the guys from Tesla motors.

On a different note, German magazine AutomobilWoche is reporting that Tesla will be supplying lithium-ion batteries to Daimler. The first models to use the new electric powertrain will include a Smart car and a small Mercedes-Benz model, likely the next-generation A- or B-class subcompact. Daimler CEO Dieter Zetsche promised both model will be available by 2010 in European markets, and they’re expected to come to North America soon thereafter. This is great news for Tesla as a small auto maker trying to survive in such a difficult industry.