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July 14, 2008 6:52 AM PDT

Tesla Roadsters now rolling off production line

by Martin LaMonica
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The world's hippest eco-chic status symbol--the Tesla Roadster--is finally leaving the factory.

The all-electric Tesla Roadsters, priced around $100,000, are now shipping, company president and CEO Ze'ev Drori told customers on Friday. The letter was reprinted on the company blog on Saturday.

One of the 27 Tesla Roadsters undergoing final assembly in the company's Menlo Park, Calif., outlet.

(Credit: Tesla Motors)

Drori said Tesla has "broken the logjam," beginning to manufacture Roadsters at a low volume, meaning that it will deliver about four a week. There are now about 27 Roadsters in various stages of assembly, he said.

Production, done at a Lotus plant in the United Kingdom, will remain low until September, when the company starts to incorporate its second drivetrain, Powertrain 1.5, designed to give the car better performance.

In December, the goal is to produce 100 Roadsters a month.

It's a dose of good news for Tesla's well-heeled customers, who have had to endure months of delays.

Tesla has had both technological challenges in making an all-electric car that runs on lithium-ion batteries, as well as a management turmoil, detailed in great detail in this recent Fortune report.

Click on the image to see a photo gallery of the first Roadsters in production.

(Credit: Corinne Schulz/CNET Networks)

Tesla's largest investor, PayPal founder Elon Musk, took over control of the company last year and ousted founder Martin Eberhard as the carmaker transitioned from technological development to product shipping.

Tesla also recently named former Chrysler executive Mike Donoughe as executive vice president of vehicle engineering and manufacturing.

Tesla is, perhaps, the most high-profile green-tech company to emerge from a swell of activity in the past four years. Its problems illustrate some of the challenges in energy technology start-ups.

Unlike start-ups trying to sell to, say, electric utilities, Tesla's wealthy, techno-savvy clients are willing to shoulder some of the risk of a new product.

Drori also announced in the company blog that Tesla has opened its second store in Menlo Park, Calif., replicating the high-touch sales environment of its first store in Los Angeles. Showrooms in New York, Chicago, Miami, and Seattle are planned as well.

The Roaster will have a range of 220 miles per charge and the mileage equivalent of 135 mpg. It can go from standing still to 60 mph in less than 4 seconds.

The company is also planning to make an all-electric sedan priced at about $60,000.

Updated on July 16 with correction to the rate at which Tesla plans to make Roadsters later this year.

Martin LaMonica is a senior writer for CNET's Green Tech blog. He started at CNET News in 2002, covering IT and Web development. Before that, he was executive editor at IT publication InfoWorld. E-mail Martin.
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Add a Comment (Log in or register) (27 Comments)
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by yacahuma July 14, 2008 7:36 AM PDT
I wish them the best. I dont expect anything good to come from the big US manufacturer. All 2009 cars ARE OLD. Do people buying this cars forget how expensive that gas is (and will be in the near future)? Is stupid to buy any US car right now. Their mpg are pathetic.
Reply to this comment
by br007 July 14, 2008 8:02 AM PDT
yacahuma.....

did you even read the article? The car is powered by electricity not gas! Also, Tesla is not a BIG US manufacturer!!!! The company is new and is working on putting out 4 cars a week!!! You call that big? And since when is Lotus American? Read the article first! Your reading comprehension skills are pathetic.
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by FS1982! July 14, 2008 8:16 AM PDT
Is it just me or is Tesla a small company able to outdo the large big named car manufacturers? I wish Tesla the best and I certainly will invest in them if given the opportunity. Regardless, the current manufacturers are very behind the game and I am very disappointed with especially the US manufactureres who no longer innovate but simply steer the market to the money sucking (and gas sucking) bigger models. I'm an American by heart and this is simply unacceptable that GM, Ford, Chevy are so far behind the game. America was founded on being the most innovative, the first to do something, and trying to be the best at whatever it was we were doing. Look where we are now. Grrrr get with it America gez!
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by kklakk July 14, 2008 10:58 AM PDT
My sentiments EXACTLY. I've been waiting and watching 30 years (!!) for Detroit to knock off the "it's just too costly to retool" cop-out, "play" with alternative fuel prototypes and get SERIOUS about producing an affordable zero emission vehicle.

After all, GM already HAD the all electric EV produced (but LEASED only) in '96. So what did they do after just a few years? They joined the Oil co's. and Feds leveraging CA to quash it's planned law (for a certain % zero emission vehicles) and RECALLED ALL of it's OWN EV's leasers from it's customer base!! (source documentary, "Who Killed the Electric Car?")

Not only is Detroit caught with it's pants down. but the big 3 have completely left the American pubic in the lurch for DELIBERATELY ignoring viable technological alternative fuel source vehicles FOR OVER 30 YEARS now...

GM Ford, and Chrysler have only themselves to blame for letting this occur.

Tesla is DELIVERING on the "CAN DO" American innovation that's been a big part of what's made this country great.

Go for it Tesla !!
by open-mind July 14, 2008 6:30 PM PDT
Might want to check out this web site:

http://www.gm-volt.com
by open-mind July 14, 2008 6:32 PM PDT
Have you heard of the Cobalt XFE from Chevy?
by -fjtorres- July 14, 2008 8:17 AM PDT
Yacahuma - you do know that the development cycle for modern cars runs 5 to 6 years, right? The 2009 cars were being designed in 2003-2004. And what did gas go for in those days? Customers were hardly clamoring for fuel efficient cars then so why should the automakers be going out on a limb with their $300 million investments?
The earliest we'll see a new gen of "modern" fuel-efficient cars will be around 2011-12.

Realistically, we won't see any volume sales of any *mainstream* electric (or plug-in hybrid/fuel-cell, whatever) car for about ten years. The tech isn't really there. Tesla is actually doing well if they get to 100 cars a week (5000 per year) and actually sell them. That would put them in Dodge Viper (peak sales) territory.
That's a far cry from Accord/Camry (200,000 a year each in the US).
Baby steps is all we can expect; there are no silver bullets to this problem.
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by mike.loux July 14, 2008 8:23 AM PDT
"Your reading comprehension skills are pathetic."

Not nearly as bad as yours, it would seem. Clearly yacahuma was wishing them the best of luck and NOT in a sarcastic way (as you so quickly assumed). And yacahuma was bashing the big 3 US manufacturers (they just had a typo and didn't pluralize "manufacturer", and mispluralized "these" as "this"), NOT Tesla which is, by your own comments, not big and not American. Seems pretty obvious to me what they were getting at.

Maybe you need to read things through a FEW times before being so quick to flame. So yacahuma's first language is probably not English. So sue them.
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by YankeePoodle July 14, 2008 8:39 AM PDT
I hope tesla has solved the engineering problems of electrical cars and which can be utilized in a more economic and affordable series.
I like Tesla but cannot afford it. I hope we will have electric cars that are sub-30K, so that the country can move towards them instead of relying on gasoline.
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by gsmiller88 July 14, 2008 9:30 AM PDT
Ah, I'll wait for the Chevy Volt to come to market and save about $60k
Reply to this comment
by Astinsan July 14, 2008 9:33 AM PDT
I wish them well.. I want one of these cars so bad. The price for this pretty much made to order car is not bad at all. If only I had the cash. I would buy one right now.
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by JohnMcGrew July 14, 2008 9:47 AM PDT
It will be amusing when these buyers find out that on a BTU level, electricity is more expensive that gasolene.
Reply to this comment
by LastAvailableName July 14, 2008 1:48 PM PDT
Since gas is burned, a lot of those "cheap" BTU's in your gas tank are just heating the area beneath the hood of your car instead of providing motive force. This means you need to carry around extra weight in the form of a complex cooling system that also does not help provide motive force and ultimately lowers overall efficiency.

Personally I'd prefer a transportation system that could utilize domestic energy sources and was less exposed the vagaries of international politics and was far more efficient than burning a flammable liquid to propel me down the road.

That's to say there aren't reasons to be skeptical of the electric car's mainstream acceptance. I think batteries are just now on the cusp of being well suited to personal transportation and are still prohibitively expensive for the energy storage they offer. But to try and write battery electric vehicles off from a physics standpoint is being silly.
by albizzia July 14, 2008 5:37 PM PDT
Yes, but since charger, batteries and electric motor combined is 5 times more efficient than a gasoline engine, the cost per mile for "electric fuel" is less than 1/4 the cost of driving a gasser!
by rcfisher032 July 14, 2008 12:16 PM PDT
Everyone seems to forget that GM actually had an electric that worked. But GM would rather sue the EPA/Gov over efficiency smog requirements than to inovate in the market. The foreign car companies seen to be the inovators over the past 30 years not the American cos. If all the Amercan manufacturers had been working on better more effecient engines they wouldn't be in the pickle they are in now. The key is to INNOVATE . . .
Reply to this comment
by maxsell July 14, 2008 12:37 PM PDT
FYI to all of you Tesla is an American company.
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by aargonaut July 23, 2008 7:30 AM PDT
Maxsell. It may be owned by American money - but the innovation and the production are being done at the Lotus plant in the UK. So in theory, this is a British company using US money to produce a car for rich Americans.
Get it right buddy....
by aka_mythos July 14, 2008 1:18 PM PDT
This is good news, if only the automotive companies would get off their butts and do as much to implement real innovation.
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by absmeti July 14, 2008 1:27 PM PDT
An average american car costs about $25K. If this electric car costs $100K, I have about $75K left to buy gas if I buy an american car. Even if gas goes up to $10/gallon and my gas guzzler american car makes 20mpg average and I drive 15k miles per year. I will use 750 gallons of gas per year, $75K should be enough to last me 10 years of driving. Just does not make any economic sense to go with a $100K electric car; and I won't even have to plug it in and pay for the electricity :)
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by albizzia July 14, 2008 5:49 PM PDT
But does your gas guzzler do 0 to 60 MPH in 3.9 seconds?

Like other high performance sports cars, this was not designed for penny pinching misers. It was designed for well-off folks who want high performance and the latest technological marvel, and who like the idea of a clean green mean machine.

Tesla is using their experience to develop a less expensive sedan for about $60K, and a third model to be about $30K.
by PearceR July 14, 2008 1:29 PM PDT
I think these guys are about to change everything. I'm just wondering when they are going to go public - this is the sort of innovation that I want to invest in. I'm not really a stereotypical treehugger, but I'm a firm believer in what they are trying to accomplish.
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by CmdrRickHunter July 14, 2008 4:09 PM PDT
@ JohnMcGRew: is that true? I always thought electricity was more efficient because it could be burnt in scale, and thus technological advances became affordable sooner. I thought gas engines were working hard to get to 30% efficiency while turbines were at 40%+

Could be wrong though.

The bigger question is: how wise is the lithium battery technology? Is the environment gain going to be squelshed by the cost of making/disposing of batteries?
Reply to this comment
by albizzia July 14, 2008 6:03 PM PDT
Typical IC engine efficiency is 15% to 25%. Turbine efficiency vary according to design, small turbines tend to be less efficient

The ingredients for lithium batteries are fairly common and affordable, the cost is mainly in manufacturing. The batteries Tesla is using have no heavy metals like lead or cadmium, are considered nontoxic and can be landfilled safely. But it is cost effective to recycle them, and Tesla has already run successful tests on recycling proceedures.
by JustinDoDrop July 15, 2008 4:54 AM PDT
Dude that is one sweet looking ride. I mean it is REALLY nice! Would love to have one of those!
http://www.crypt.alturl.com/
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by kungfulkoder July 15, 2008 5:28 AM PDT
absmeti: Sure, there may be a gap between the cost of electricity and the cost of fuel. However, there are a few things you are missing:

A) Depending on where you live and have access to, the environmental cost of producing electricity may be less than what it takes to produce, transport, and burn gasoline.
B) This is a *sports car*. 0-60mph in ~4 seconds. Most cars with that kind of acceleration cost $ and have bad to horrible fuel mileage.

Its not perfect, but Tesla is making a good move in creating demand for alternative forms of powering vehicles.
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by maria7281 July 16, 2008 11:06 AM PDT
It'll definitely be fun to see more of these on the road. I saw one for the first time back in November and it was pretty exciting. I put some pictures up here: http://greenhome.huddler.com/products/2008-tesla-roadster-coupe
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by dirty55409 December 4, 2008 9:08 AM PST
dang this is an old article but I have three words for tesla.

LITHIUM-IRON-PHOSPHATE

yep there is what will be in your future if you want to stay afloat. Less likely to explode or start on fire, quicker to charge, lighter per cell, and a higher capacity per cell so you get 3/4 the weight and 25% at least more power!
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