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As we have focused over the last 6 months on the final stages of the Roadster launch, we have intentionally dialed back the public discussion on our sedan program. However, I can assure you that during that time, we have continued to make significant progress on several fronts. Our vehicle design and program development teams have been hard at work finalizing the styling of the car, refining the engineering approach, and planning a state of the art manufacturing facility.
This past January I undertook a thorough review of the program’s operational and logistical elements. One of the key conclusions was to challenge the merits of locating the plant and the program so far from our R&D and engineering teams in the Bay Area. Ultimately, it was decided that the best strategy to ensure the success of the program would be to locate the manufacturing operation in California as close to our headquarters as possible.
There are several key reasons why California is the right location for Tesla’s manufacturing facility: first, the operational advantages of locating our operation in the Bay Area close to our management and engineering teams. Second, the proximity to our most important markets. Last, but not least, Governor Schwarzenegger’s commitment to leading the nation and the world in addressing climate and energy concerns. Together, these reasons make the decision to move the sedan manufacturing program back to California clear.
Naturally, decisions such as this leave some parties, in this case our friends in New Mexico, disappointed. We would like to extend our sincerest gratitude to Governor Richardson, his staff, and all of the professionals in the economic development community in Albuquerque for all of their assistance and advice they’ve given us over the past year.
Let me close by pointing out the decision that we announced today with the Governor represents a major milestone in the sedan program. Having set down a marker of where we will be establishing this critical operation, we can move forward on many fronts. This will allow us to bring the sedan program to fruition and to continue to drive toward Tesla Motors’ mission of making the electric vehicle the dominant mode of automotive transport for the 21st century and beyond.
I’m sure the people in new Mexico will be very disappointed, but as a Californian and a resident of San Carlos, I’m very happy.
Have you considered a fabric skinned vehicle, like BMW’s Gina concept:
www.youtube.com/watch?v=kTYiEkQYhWY
It could save you a lot of tooling costs for such a low volume vehicle, while allowing a very unique look.
Great news to have WhiteStar (or Model S) back in California.
Governor Schwarzenegger’s press release:
Governor Schwarzenegger Celebrates Clean Technology Investment in California, Welcomes Tesla Motors Production to California
gov.ca.gov/index.php?/press-release/10038/
Streaming video of the announcement (launches windows media player):
msmedia.dot.ca.gov/governor/20080630_tesla.asf
Some more discussion about the announcement:
www.teslamotorsclub.com/news-articles-events/1309-whitestar-announcement-tomorrow-governator-11-30pst.html
Please choose a better name than Model S. I think that the “Tesla WhiteStar” is a perfectly fine name. Even something simple like the “Tesla EC” would be better that a dopey “Model S.”
Avoid the obvious, nothing like “Tesla Electron,” “Tesla Charge,” or “Tesla Bolt.” Although I do like the
“Tesla Threeprong Outlet”
Congratulations to the new announcement about the Sedan/Roadster production facilities! Thats great news and I believe California is the right place too.
We have to move back to local production and face reality. Not everything can be manufactured with cheap labour in a third world country and then shipped for almost nothing across oceans. The high oil price will not only help to make a breakthrough for EVs, but also make local production again more attractive! We look forward to hear more details about the Sedan soon.
Many thanks for this short but informative update. Can you reveal any insights on the rumours (?) of cooperation with Daimler? According to a dutch on-line car magazine, MB is to launch an electric A-class by 2010 (!). It mentions that for the battery pack a cooperation will be started with … Tesla, which also provided the pack for the Smart. Any comments?
GREAT MOVE…….. California has always been the best place to build a cutting edge electric car for many reasons. I am happy to see Tesla making this move.
I can’t wait to hear more about the WhiteStars (aka Model S) When will they enter production? What will they look like? How many will be produced in the first year? What will it take to get on the waiting list? I’m sure all these questions and more will be answered in time but I can’t wait hear more. The Model S might be the first new car I ever buy and I think that would rock.
Love to hear you’re going to manufacture cars locally. Don’t miss out on the old Gaylord paper mill site, now a cement pad, in the Gateway to the Delta,
Antioch. Its right on the San Joaquin river near the Antioch bridge, a Mirant power plant, next door (Pittsburg) to UPI steel, and other various small industry resources. Since the close of several plants in the Antioch/Pittsburg/Oakley areas, there’s quite an opportunity to insert life back into the East County area by bring blue collar jobs back.
Fantastic news!!! We are very excited in the Cheesemans’ Family and Cheesemans’ Ecolgy Safaris. We have ordered the Roadster over a year ago and now will order the 5 passenger Sedan. We have solar panels all over our roof and want to be totally solar for our vehicles. We are a green company and promote saving habitats and wildlife and want to promote clean air. Thank you for your good work Tesla. Doug Cheeseman
Makes good business sense to locate your sites closely. 2010 will be a banner year for many types and styles of EV’s. Tesla will need all advantages going up against the bigger companies. Look forward to read more.
I have to disagree with the mob here.
The cost of living in the Valley is about twice what it is in Albuquerque. Having lived in Sunnyvale for two years recently, I understand all too well how that affects the pricing of *everything*. For instance, you will have to pay your line workers more in order to attract skilled people who can do the best job and ensure quality product. Those costs trickle up and impact your final SRP.
Building the Roadster was a brilliant first move. The audience for that product isn’t sensitive to those kinds of prices. They can afford expensive cars, so the value proposition becomes merely the environmental benefits and performance. (”Merely”… I know, I know.) Trouble is, you can’t build a world-class car company with that strategy. To build a multinational, multiple billion-dollar business that has the wherewithal to endure, you have have to have a product that gets you out of that niche.
A tricked-out Toyota Corolla runs in the low $20K range. WhiteStar is already projected to be $50K… out of the reach of most Americans. And the price of the Roadster recently increased 10% in its second year, suggesting some cost underestimation during initial development. This says to me the final sedan might end up being $55 or $60K — without factoring in any cost increases resulting from the move.
I realize that’s a pretty simplified outlook. I also obviously don’t have all the details of the benefits the California government are providing to the company. I just hope this doesn’t come back to bite you. To my mind, Tesla has long had the clearest and most exciting vision for the future of passenger vehicles, and I very much want to see you succeed.
It don’t make no nevermind where; Just Do It!
Does model S, has to do anything with model T from ford?…I think That is genious. How about Model S Whitestar?
I agree with Gabe, try to avoid, Electron, or volt, or anythign like that, Like Elon says. We want to make people buy cars that are appealing no matter what the power train behind is. Though, I of course like me an electric powertrain.
Gooo Teslaaaa!!!
That’s funny! Californians actually realizing that big companies create jobs and are good for the economy and gasp! lower taxes encourage companies to relocate there! What will those liberals think of next?
As a New Mexican, I am very disappointed. As a Tesla fan, I don’t care where the heck it is built, just build it and build it soon!
Thanks for the update. I am one of those been waiting for new sedan information and feel the Tesla WhiteStar would be an appropriate name. After 26 years of driving, this may also be my first new car purchase. Depends on price and range.
I suggest for Tesla Motors to consider the great potential of a location on Mare Island, Vallejo, CA..
www.lennarmareisland.com/
Re: Location, location, location
I have to agree with Tim Keating’s comment that - as a laptop critic - it makes no financial sense (to me) to move from New Mexico to one of the most expensive parts of the US. Had it been the other way around I could see the logic.
But I have to assume that Tesla has thought it through thoroughly and that their decision is based on solid reasoning and information I know nothing about . . . in any event it’s good to hear of some progress at long last.
Bon chance.
Peter J. Hedge
Victoria, BC
How about getting behind an EV Hill Climb (see article below), to help break the public perception of EVs as an unexciting/unpractical option (Tesla Roadster notwithstanding).
This scenic route on the hill overlooking Reading, PA hosts two events on the same stretch of road, the Pagoda and Duryea Hillclimbs. Pagoda is a shortened version of Duryea, starting at turn 2 and finishing at turn 9 of the longer course.
Duryea Hillclimb - The Blue Mountain Region SCCA hosts the longest hill in the PHA series. Named for the obscure automobile maker and following the same route that Charles Duryea used to test his cars, this is a 2.3 mile hill located in a beautiful city park in downtown Reading, PA. With a history dating back to 1951, festivities this year will include a celebration of the 100th anniversary of the automobile. Possibly the most diverse and challenging hill in the Northeast, Duryea boasts 11 turns (most of which are negotiated in the first half of the course) coupled with some high speeds at the top.
Hillclimbing presents unique challenges that can only be experienced in this venue of motorsports. A perfect example can be found in turn 6 at Duryea. This turn has a nickname (which cannot be printed in this magazine) that describes the mood of a driver as they discover they have hit the brake either too early or too late. The challenge faced here is the quintessential dilemma of hillclimbing: how long can you stay on the gas when entering the turn without causing the course workers to scramble into the woods? Some drivers fight the urge to break early only to find themselves too deep into the turn, thus causing an involuntary muttering of the turn’s nickname before proceeding into the hay bails. On the other hand, even veteran drivers will sometimes be fall prey to the optical illusion that causes the braking point to look closer than it actually is. The result is premature breaking (ask your therapist). In baseball terms, it’s like starting your slide into homeplate halfway between home and third base (very embarassing to say the least). Consequently, this is the most popular turn for spectators. But if using your right foot is the reason you race, then welcome to the top of Duryea. Your thoughts turn to horsepower and freedom as you downshift into second or first gear, trying to keep your momentum around the hairpin turn 10, knowing that what awaits around the bend is a long, steep straightaway. Radar guns have clocked some cars at 140mph on the way to the checkered flag. Then again, if your car handles better than it accelerates, we suggest you bring along a copy of Grassroots Motorsports Magazine to catch up on your reading and to help pass the time as your car chugs its way up to the finish line.
Pagoda - The British cars get their revenge at this event, which is run on the same mountain as Duryea. Named after the Pagoda which decorates turn 10, this is a handling course which offers the all the challenges of turns 3-8 (including the famous turn 6), while leaving out the high horsepower final straight of Duryea.
Description Courtesy of Mike Ancas
Copyright (c) 2000-2003 By Mike Ancas. All Rights Reserved
Duryea Hillclimb
Location: Reading, PA
Length: 2.3 miles
Elevation Change: 800′
Number of Turns: 13
Hill Record: Floyd Schrammeck - 1:47.659 (1993)
Pagoda Hillclimb
Location: Reading, PA
Length: 1 mile
Elevation Change: 450′
Number of Turns: 7
Hill Record: Jim Miller - 48.881 (2002)
Part of the deal was a low (no) tax deal for a number of years.
To the comments on the cost of the Whitestar - it is supposed to be a competitor for Mercs etc. The third model (name?) is supposed to be the mass market priced sedan
I work at the last auto manufacture on the west coast. We are removing one of the assembly lines later this year. Maybe we can build cars for you. We already have the man-power in place and the manufacturing facility, logistics, toyota production system. All the elements to build a world class automobile which we have done for over 25 years. If thats not an option then please look for my resume.
Thanks,
W. Smith
Brentwood, Ca
This story ( www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/06/30/BATH11GGP2.DTL ) has many details left out of this post.
The incentives CA gave Tesla to build the plant are huge. First, they’re exempt from sales tax. Next, they qualify for $1M-$1.5M in training grants. But probably the biggest deal is that the state is going to finance $100M worth of equipment and lease it to Tesla. At the end of the lease Tesla can buy it and is exempt from the sales tax (around $9M) if it does. I’m no expert, but it would seem that leasing it for the first few years would keep the liability off Tesla’s balance sheet, making the financials look much better in the event of an IPO. But that’s neither here nor there; the point is that CA’s offer probably beats the NM one (estimated at $7M) by double or more. Other revelations from media accounts of the announcement are a “Model S” price (around $60k) and range (225mi+).
I wonder why none of this made it into the blog post. Lately it seems a lot of the posts are pretty thin. And is there any chance of some Whitestar details? From other sources (Elon at www.autobloggreen.com/2008/06/25/autobloggreen-qanda-tesla-motors-chairman-elon-musk-pt-3-lesso/ ) I hear that it’s to be all electric again (woohoo!), the body is stamped aluminum, the battery pack (no longer called ESS) is much improved, there are “huge improvements on the powertrain side” and the target price is $59,000. Elon also expects the unveiling “probably in a few months” which begs questions about the timetable…getting from here to production in 30 months sounds like a mighty tall order.
Granted, I’d like to see a bit more press on the original Tesla Roadster rollout, and how far *that’s* gotten, before we start dashing on to the next-generation of cars….
However, judging from the lack of “Where’s the Tesla?!” complaints in this thread, I’m guessing the cars are quietly making their ways to their owners.
I think Shwarcheneger (sorry for the spelling) [That would be Governor Schwarzenegger - Ed.] got his Tesla car already. Don’t you think?.
He seem pretty pumped up about the announcement….
;)
Chris,
That is my suspicion as well - we’ve seen photos of Roadster’s in transport, so there are probably many in the hands of customers. If Martin doesn’t have his yet, then they must have parked the wrecked vehicle, and they are building him a new one.
As a resident of New Mexico I am very sorry to hear this news. New Mexico can not compete with the incentives that California offered up. But unless companies come to NM and help increase the tax base it never will. And after Albuquerque city government spent the money to route utilities out to the proposed Tesla site.
I hope Tesla looks at NM for future expansion.
American ingenuity once again leads the way to the future. It’s like our only export these days. Go. Go. Go.
Jason M. Hendler, July 2nd, 2008 at 7:16 am
I believe that Martin requested his vehicle be repaired IIRC
anon,
I know Martin has requested that his vehicle be repaired, but it has been a long time since he requested the repairs, so I am speculating that they must be building him a new one, as it shouldn’t take so long to repair.