Tesla talks up all-electric Model S

Electric car manufacturer Tesla has revealed fresh details about its plans for a more affordable follow-up to its $100,000 (£50,000) all-electric sports car the Roadster.

The company said yesterday that it was planning to deliver a five-passenger sedan with a range of 225 miles per charge that would cost in the region of $60,000 (£30,000). The vehicle, which has been being developed under the project name WhiteStar, will be branded as the Model S with production scheduled to start from 2010.

The announcement was made at an event at Tesla's headquarters in California, attended by Governor Arnold Schwarzenegger, where it was revealed that the production facility for the new model will be located in the Bay Area.

The company had been offered a package of tax breaks worth an estimated $7m (£3.5m) to locate the facility in New Mexico, but California responded with a rival package reportedly worth $9m (£4.5m) as part of an attempt to keep the company located entirely within the state.

"I bought one of the first Tesla cars, so for me to see this company build a plant in New Mexico drove me absolutely insane," Schwarzenegger said at the event. "My administration, of course, does not like to lose."

The company also signalled that the Model S would represent a first step in its drive to deliver affordable, high-performance electric vehicles.

Speaking at the press conference, Tesla chairman Elon Musk said the firm was already working on an all-electric car that could sell for less than $30,000 (£15,000). "This company is not out to solve a sports car shortage in the world, " he said.