$350 Million in Government Grants; Sedan by 2011

Tesla Motors, the California company behind the buzz-worthy all-electric $100,000 Tesla Roadster, said today that it expects to receive $350 million in government loans within the next 5 months. The money would go to build a factory to produce the Model S sedan, which would debut in 2011 and cost around $50,000 after accounting for a $7,500 tax break for electric cars. Getting the price of Tesla models within the realm of affordability for consumers has been a major challenge for the company. These government loans may just help them achieve it.

Though final approval has not yet been given, this is very exciting and potentially industry shaking news. The Tesla sedan would compete with GM’s Volt (slated for release late 2010 at around $40,000) and give consumers another affordable choice in the growing world of hybrid and all-electric vehicles. A thriving national electric car industry has the potential, along with investment in upgrading, securing, and greening the electrical grid, to dramatically reduce foreign oil dependence while mitigating environmental impacts.

A drivable prototype of the Model S sedan will be on display on March 26th at the Tesla design studio.

- Justin Manger