Earlier this week, Tesla Motors unveiled its second car, the Model S sedan. Tesla showcased a working prototype car, but press was not allowed to do test runs. Model S will bare price tag of 57.400 USD, but after $7.500 federal tax credit for electric vehicles, its base price will drop to psychologically more attractive price $49,900. Would that make you buy electric car?

After high end Tesla Roadster which is already selling, Model S sedan will target mid range. Model S is believed to be a major step toward mainstream electric car, and some even say it will be first mass produced electric car in world (GM's EV1 was hand-built and reached total production of about 1,100 units from 1996 to 1999; and other electric cars like Toyota's RAV4 EV were in fact gasoline cars converted to electric propulsion). Model S will be a four-door luxury sedan, that will share power train components with Tesla Roadster. This means it will have a 1,000-pound (500 kg) battery pack of more than 6,800 lithium-ion cells. Its range will remain around 240 miles (390 km) per charge, similar to  what Roadster achieves today.

In late 2011 when Model S hits the roads, it will (luckily for us) find itself in tough competition from electric vehicles made by other manufacturers. Model S will remain pure electric vehicle, as it will have no secondary engine (like hybrids, and plug-in hybrids). Competition will include future models of Toyota Prius and Honda Hybrids, upcoming electric cars from Nissan, Mitsubishi and of course highly anticipated Chevy Volt, but also Tesla's competitor - Fisker Automotive. If Chinese manufacturers BYD's promise will hold, US roads will also be swarmed with smaller and cheaper electric cars. Price-wise Model S will compete against the Mercedes-Benz E-Class and the BMW 5-Series and the Audi A6. Highly anticipated GM Volt is scheduled to go on sale in November 2010. Its price will be about $40,000, and its range on batteries will be only 40 miles. Volt will include small gasoline engine that will extend the range. Tesla admitted it considered hybrid technology, but after careful review, they decided that future of transportation is pure electric vehicle.

Although Model S builds on similar/same technology as Tesla Roadster, the major obstacle before putting first cars on the road is the manufacturing capabilities. Tesla's Roadsters ($109.000) are now build in UK's Lotus factory, by hand. Till today 250 cars were completed and delivered. This is completely different than mass production needed for Model S, as in 2012 full production of 20.000 cars annually is the goal. Tesla announced two new plant locations, new factories will be built in New Mexico and in San Jose (waiting for $350 million Energy Department loan). Another obstacle for all electric cars is also lack of public charging infrastructure. Also, if gas prices remain low, the incentive for electric cars might not be strong. But it looks like Obama administration is pulling the right moves, as it promised strong support for electric -vehicle and especially battery development.