SAN CARLOS, CA--(Marketwire - January 23, 2008) -

WHAT'S NEWS

--  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
    

ADDITIONAL BACKGROUND

--  As communicated previously, 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.