Tesla Motors, and California Governor Schwarzenegger announced that Tesla’s next product, a 4-door, 5-passenger sedan, will be manufactured at a facility in the state of California. 

Governor Schwarzenegger and the state of California also made it clear that they wanted to keep Tesla manufacturing in California. “Today’s announcement is incredible news for California’s economy and its environment.

Last week, the California Alternative Energy and Advanced Transportation Financing Authority, approved a new program that exempts new Zero Emission Vehicle manufacturers from paying sales and use tax on the purchase of manufacturing equipment and will encourage ZEV manufacturing in California.

Ze’ev Drori, President and CEO of Tesla Motors, remarked, “Tesla has achieved an extraordinary accomplishment. We are the only automobile company today delivering full performance battery-electric vehicles to our customers. Make no mistake - we are not a niche player with a car only for the rich and famous. As our agreement with the state so clearly demonstrates, we are building a high volume ZERO EMISSION VEHICLE, manufactured in California for mid-range family use. And we aren’t going to stop there. We will continue on and build even more affordable cars.

You are witnessing the debut of a new car company, a company unlike all others, a company with a disruptive technology, a company dedicated for the exclusive production of Zero Emission Vehicles.”  

Tesla’s saloon, which is targeted for late 2010 production, will utilize Tesla Motors’ leading electric powertrain design in a car that is both stylish, high performance, yet highly practical.