The California-based Tesla Motors said it is going to set up a Silicon Valley plant worth $250 million for making sedans, which will hit the US roads late 2010. The manufacturer of electric sports car made this announcement on Wednesday, September 17, 2008. The company made Tesla Roadster, its first fully electric and highly chic sports car, which gained widespread attention. The vehicle is supported by solid environmental credentials.

This information was confirmed by San Jose mayor Chuck Reed, who said that this Californian town known for technology is going to house the Tesla factory. In a recent interview Ze'ev Drori, the Tesla Chief Executive, said that the five-seater Model S sedan costing $60,000 will hit a rate of more than 15,000 per year by 2011 end. He also added that Tesla Motors is going to set up the proposed factory on its own.