The Auto Writer

You probably can’t afford the Tesla Roadster and most motorists won’t be able to afford the Tesla Whitestar either, but that isn’t stopping upstart Tesla Motors from going ahead with its plans to expand its model line up. News reports are leaking out today that California Governor Arnold Schwarzenegger plans to announce  that the Golden State has beat out New Mexico in a battle to win Tesla sedan production for his state.

Schwarzenegger didn’t have to dangle a tremendous amount of money to win the contest, reportedly $9 million in incentives, which is about $2 million more than what New Mexico was offering Tesla. The monies will come from a fund California has in place to help companies purchase manufacturing equipment and through a grant to train new employees. In Tesla’s case, California would furnish the purchase of $100 million of equipment and at the end of the lease term Tesla Motors would have the option to buy the equipment without paying sales tax.

The vehicle to be built, code-named the Model S, is expected to be a four door sedan with a retail cost of about $60,000, some $40,000 less than the Roadster, a model which went on sale earlier this year. Production for the new sedan, which will hold four adults, should begin in late 2010 about the same time General Motors rolls out its own electric car, the Chevy Volt.

(Source: San Francisco Chronicle)