Earlier this month, Tesla confirmed that it has started work on a second model, the follow up to the long-awaited electric-powered Roadster. The car, a family-sized four-door sedan previously known as "Whitstar" in rumors now has a name: Model S.
Although Tesla is best known for its work with electric cars, the new Model S will be dramatically different than the vehicle that preceded it. The key differentiator is, new sedan won't be a pure electric vehicle using battery power alone. Instead, Tesla is opting to make it a plug-in hybrid, which will feature a standard internal combustion engine (most likely gasoline-powered) as a method of recharging its lithium-ion batteries, much like the Chevrolet Volt.
Tesla also confirmed a couple of the Model S' key specifications, such as that it would have a range of 224 miles, and that it will sell for $60,000. Though Tesla hasn't confirmed when the car will be produced, it is expected to arrive in late 2010, and will be assembled in the state of California.
California isn't exactly known for producing automobiles, but Tesla opted to build the Model S in the Golden State due to a tax rebate, which would allow Tesla to obtain a tax exemption when purchasing equipment for building electric vehicles. This is expected to save Tesla millions, and is sure to come in handy for further research and development.
source: http://car-reviews.automobile.com/news/tesla-confirms-model-s-plug-in-hybrid-sedan/5872/
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