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Tesla moves forward with Model S electric car plans

A special-edition Tesla Roadster was among the cars on display at the Geneva Motor Show this month. A Roadster is too dear for most, with a $109,000 price tag.

Associated Press

A special-edition Tesla Roadster was among the cars on display at the Geneva Motor Show this month. A Roadster is too dear for most, with a $109,000 price tag.

GENEVA — The death of three Tesla engineers in a plane crash last month was a heavy blow for the tight-knit Californian electric car maker, but it is holding onto its plan of producing and selling the new Model S within three years, its chief designer said recently at the Geneva Motor Show.

"The plane crash was hard to absorb," Franz von Holzhausen told the Associated Press. "We have to all rally and pick up the slack."

Doug Bourn, a senior electrical engineer; Andrew Ingram, an electrical engineer; and Brian Finn, a senior interactive electronics manager, died when their Cessna struck power lines in fog near Tesla's East Palo Alto headquarters Feb. 17.

Von Holzhausen said Tesla was already scouring the auto and aerospace industry for talent to meet its ambitious schedule of rolling out its second all-electric model before the end of 2012.

The fledgling automaker hopes the Model S will win over environmentally conscious consumers for whom its only current offering, the Tesla Roadster, remains out of reach.

The midsized sedan will retail for about $49,000 in the United States, significantly less than the $109,000 Tesla is asking for the high-end Roadster, which will cease production around the time the new model comes to market.

The Model S "is really what's going to cement the Tesla brand in the marketplace," Von Holzhausen said.

Any customer who orders a Roadster now is guaranteed to still get one though, he added. So far, Tesla has sold about 1,000 of its electric sports cars in 21 countries. The Roadster has a top speed of 125 mph and a range of 244 miles.

Von Holzhausen said by the time the Model S comes to market, battery technology will have significantly extended the distance that car can travel on a single charge.

The company is pushing its vehicles out through 10 dedicated showrooms in the United States and Europe, and will open at least four more in Milan, Zurich, Copenhagen and Paris this year.

There are also plans to expand to Asia, with a righthand-drive Roadster destined for Japan, Australia and Hong Kong later this year.

Cristiano Carlutti, vice president Europe, said he was confident the small company of just 500 employees can hold its own against more established automakers. Tesla has already entered into a partnership with German auto giant Daimler to produce batteries for the company's electric Smart car range.

Tesla moves forward with Model S electric car plans 03/17/10 [Last modified: Tuesday, March 16, 2010 7:35pm]
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