Tesla Motors To Build Manufacturing Plant In San Jose  

The BBC reports that Tesla will be building their new electric sedan in San Jose - San Jose wins electric car plant

San Jose is aiming to be the capital of clean technology following a $250m (£139m) deal with electric car maker Tesla to base its new factory there. The city beat other contenders to secure a project that will bring more than 1,000 jobs to the area. "This is a big step toward being the centre of world cleantech innovation," said San Jose Mayor Chuck Reed.

Tesla boss Ze'ev Drori said that "this is proof the time has come for the electric car." The company plans to produce an all-electric luxury sedan, called the Model S, at the plant with a retail price of around $60,000 (£33,000.) It already manufactures a two seater zero emission Roadster which sells for $109,000 (£61,000) and is built by Lotus in England.

Mr Drori told BBC News Tesla hopes to deliver its first cars by 2010. They will have a range of about 240 miles (390 km) per battery charge. The production run is set for around 15,000 vehicles initially, with half of the line being sold in Europe. "This car signals an end to dependency on foreign oil. The summer of high gas prices has accelerated demand for such a vehicle."