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Tesla building Silicon Valley plant

California-based electric vehicle manufacturer Tesla is building a $250 million plant in Silicon Valley south of San Francisco. The plant, which is set to open in time to have full production vehicles on public roads by late 2010, will build Tesla's upcoming electric sedans (tentatively named "Model S").

Tesla, which recently started production of a high-performance electric roadster, is hedging its bets on the Model S sedan. The automaker says it hopes to build 15,000 Model S sedans annually by the last quarter of 2011. The Model S will retail for around $60,000, according to Tesla CEO Ze'ev Drori in a recent interview on National Public Radio.

Tesla has received numerous tax breaks from the state of California and the United States Department of Energy has approved $150 million worth of loan guarantees, says Automotive News.