Jul 1, 2008

Tesla sees $30K car by 2012

By Will Oremus/Daily News Staff Writer

At $109,000, the limited-production, electric battery Tesla Roadster is tailor-made for trend-conscious celebrities and the Silicon Valley elite.

In announcing a new $60,000 family sedan targeted for production in 2010, however, the San Carlos-based company's executives hinted at a future that is at once humbler and far more ambitious.

"The goal of Tesla really is to produce mass-market cars," said Elon Musk, co-founder and chairman of the automaker.

"This company is not out to solve a sports car shortage in the world."

Specifically, Musk said, "We have some projects in the works that could actually deliver a pure electric car for under $30,000, maybe a lot sooner than anyone thinks."

How soon is that?

"I would say it's probably four years at the most," Musk responded.

Tesla has orders for more than 900 Roadsters but has shipped just five since regular production began in March. Gov. Arnold Schwarzenegger, who is 37th on the customer list, can expect to wait several more months for his.

The company hopes a new Bay Area plant will allow it to start production of 10,000 "Model S" sedans per year and ramp up to 20,000.

It has no hard estimate yet for the $30,000 vehicle, but spokeswoman Colette Niazmand said she would anticipate "tens of thousands" produced annually.

A reasonably priced, high-production vehicle was part of the company's plan from the start, Musk said.

"The reason we have an expensive car initially is because the technology is expensive," he said. "It takes time to optimize.

If we could do a low-cost car right off the bat, we would have done it."

E-mail Will Oremus at woremus@dailynewsgroup.com.