Tesla Motors Completes all Regulatory Approvals and Sets Schedule to Begin Production. First production 2008 Tesla Roadster Imported – Series Production Begins in March.

Tesla Motors has received all regulatory approvals to import the first production Tesla Roadster ("P1") for sale. This includes all necessary EPA and DOT approvals, including completion of all Federal Motor Vehicle Safety Standards (FMVSS.)

P1 will arrive at Tesla Motors headquarters next week for delivery to customer Elon Musk, Chairman of Tesla Motors. Series production of the Tesla Roadster is scheduled to begin March 17th, 2008.

Early production units will be equipped with an interim transmission that meets durability requirements but limits acceleration to 5.7 seconds from 0 to 60 mph. Separately, Tesla Motors engineers have designed a permanent solution for mass production that supports the original specification of 0 to 60 mph in 4 seconds.

The planned solution has some very positive benefits for our customers. Instead of a complex 2-speed transmission design, Tesla will achieve the original performance goals with a simpler one-speed unit mated to a higher rated Power Electronics Module (PEM.) The existing motor will be modified to have advanced cooling capabilities to handle the additional power. The permanent transmission unit will be engineered to handle the higher torque of the powertrain.

The planned solution reduces program risk, provides better efficiency, lower weight, equal or better range, better thermal performance and quicker quarter mile acceleration due to the elimination of the need to shift gears.

The planned solution incorporates the latest developments of our powertrain team which has been continually improving on Tesla's core technology. Early production will proceed at a limited rate and then ramp up to full production when the permanent powertrain solution is production ready later this year. The upgrade from the interim solution to the higher power, permanent solution will be provided to our customers free of charge when available later this year.