Tesla says production facilities will be in California ; thousands of jobs possible . The all - electric Model S sedan will go for a base price of about $ 500 . Tesla 's challenge : Thursday 's announcement was made in Hawthorne , California , where Tesla unveiled the Model S sedan at a base price of $ 49,900 , after a federal tax credit of $ 7,500 . Will consumers pay that much for a car in recessionary conditions ? The company plans to make 20,000 Model S sedans a year .
Tesla says production facilities will be in California ; thousands of jobs possible . The all - electric Model S sedan will go for a base price of about $ 500 . Tesla 's challenge : Will consumers pay that much for a car in recessionary conditions ? The company plans to make 20,000 Model S sedans a year .