Tesla building new assembly line and HQ in San Jose, CA

An all-new $250 million facility located in the heart of Silicon Valley will host Tesla's assembly-line, R&D and headquarters as it ramps up for production of its all-electric Model S luxury sedan. The site will occupy 89 acres in San Jose, California and when fully operational, will employ about 1,000 workers. Groundbreaking is scheduled for mid-2009.

Tesla's new Model S luxury EV is expected to feature a base price around $60,000. Range is targeted at 240mi (384km) with 'exceptional performance'. The company expects the first of the production vehicles to roll out of the newly announced factory by late 2010. The Roadster, the electric sports car that has built Tesla's fame, will continue to be built by Group Lotus in Hethel, UK.

The move of its headquarters and R&D operations to San Jose from its current operations in nearby San Carlos will make for a minimum of impact on the company, it says, while allowing it to continue to draw on the wealth of engineering and design talent in the Silicon Valley area.

“Locating Tesla’s headquarters, manufacturing and R&D in San Jose will allow us to proceed with minimum disruptions and virtually no dislocations," said Ze'ev Drori, Tesla's president and CEO.

In keeping with the company's green mission statement, the new factory is designed to achieve a gold certification from the U.S. Green Building Council's LEED scoring system.

“Tesla has amazing momentum right now. The excitement within the company is palpable,” said Tesla Product Architect and Chairman Elon Musk. “The company has clearly taken production of all-electric vehicles to the next level, and the Model S assembly plant will dramatically accelerate our growth.”

Tesla already has plans for more models on the horizon, including a crossover in addition to the upcoming Model S.