Tesla Motors chairman Elon Musk is serious about getting beyond sports cars.
At a press conference with California Governor Arnold Schwarzenegger, Tesla co-founder and chairman Elon Musk said the company has an ongoing program to produce an all-electric car that will cost under $30,000. It probably take “four years at most” to get such a car out, he said.
“This is not about addressing a sports car shortage,” he said.
Tesla has talked about doing moderately-priced cars since the beginning, but the company now is getting firmer on their plans, which in turns means they are serious.
Getting out an electric car out for less than $30,000, though, won’t be easy. Batteries still cost quite a bit and battery technology doesn’t improve as fast as semiconductor technology. You get about a six percent improvement in performance every year. With chips, it’s closer to 60 percent. Electric car companies also need component suppliers to start ramping up parts for them.
Additionally, Tesla has had to face delays before. The company today announced that it would come out with a $60,000 sedan in late 2010. (It will be built in California, thanks to about $10 million in incentives. That’s why Arnold was there.). Still, the sedan, once called White Star and now called Model S, was originally due to come out in late 2009. It was delayed because of delays to the Tesla Roadster, which started dribbling out of the factory this year. As a result, the Model S will come out at about the same time as the Chevy Volt, which will use a little gas and cost $30,000. (Tesla will also do a gas-electric car like the Volt.)
But, on the optimistic side, a few years ago electric cars were novelties. They are clearly moving into the mainstream now thanks in large part to Tesla. And companies like Nissan with a lot more expertise in buildings cars in large volumes are bent on coming out with electric cars.
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