Tesla Model S

It’s called the model S, and it’s going to compete with the Volt.  Although, with it’s $60,000 price tag maybe it won’t compete with the Volt all that much.  Billed as a luxury sedan, the Model S seats 5 people (the Volt only seats 4).  It’s price tag will put it still well out of range for most consumers.  GM is hoping that the $7,500 tax credit will entice enough buyers to consider the Volt at a mid 30s price range.

The model S will be built entirely in San Jose, unlike the Roadster, it will not be based on any prior car design.  The $109,000 Roadster is built on top of a Lotus Elise with some slight modifications to the body.  The new Model S will originate from the ground up at the new facility.  With the capability to travel 240 miles per charge the Model S is going to have to compete with the likes of Mercedes and BMW for car buyers.  Right now isn’t the most opportune time to be selling a luxury car, but the new Tesla won’t go on sale until 2010 (about the same time as the Volt) and who knows what the market will look like then.