• Financial Times, USA Today, Friday, March 27, 2009 11:15 AM

Tesla has unveiled its Model S salon, which is intended to propel the niche producer of the $109,000, battery-powered Roadster into the broader mass market. The full-size, luxury sedan runs at least 160 miles per full charge (a deluxe battery extends the range to 300 miles) and has a base price of $49,900 (after a $7,500 federal rebate). It could go into production in late 2011, according to USA Today.

Tesla founder Elon Musk, who made his fortune as a co-founder of PayPal, tells Financial Times that he may resort to taking a big investment from a major automobile manufacturer or a wealth fund. Its plans for the salon also hinge on the amount of backing the company receives from the Energy Dept., John Reed and Richard Waters report. It is already assured of $250 million in loan support under one plan, but Musk hopes to qualify for a larger $350 million loan.

Tesla's progress has been watched with attention that belies its small size, as it has contended with technical glitches and impatient customers on a long waiting list. The salon will enter the market alongside several other electric or hybrid gas-electric models at a time when enthusiasm for early-model hybrids is waning.

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