Tesla Motors Charged Up with $40 Million Investment by VantagePoint Venture Partners and Elon Musk

SAN CARLOS, Calif. (July 19, 2006) — All systems are go for Tesla Motors. Last month the high-performance electric car company secured $40 million Series C financing led by VantagePoint Venture Partners, one of the largest CleanTech investors in Silicon Valley, and by Elon Musk, co-founder of Paypal and founder and CEO of SpaceX. Other institutional investors included Draper Fisher Jurvetson and JP Morgan Bay Area Equity Fund. Several individuals with strong interest in CleanTech investment also participated, including Sergey Brin, Larry Page, Nick Pritzker (through his investment partnership, Tao LLC), and Jeff Skoll (through his investment company, Capricorn Management LLC). The financing is already being used to launch the company's first product, the Tesla Roadster, and to support final safety compliance testing and production.

"We are pleased to have VantagePoint Venture Partners as one of our lead investors on this round because of their commitment to hands-on investing, particularly in CleanTech companies," said Martin Eberhard, CEO of Tesla Motors, "and we are proud of Mr. Musk's continued confidence in Tesla Motors expressed through his strong participation in every round of financing and his leadership on the Board of Directors."

Jim Marver of VantagePoint Venture Partners, who joined Tesla Motors's Board of Directors added, "Tesla Motors is driving change throughout the CleanTech sector in bringing to market real-world innovations for consumers. The company will be instrumental in transforming the way that consumers view CleanTech products - products that can now have style and speed while being good for the environment."

Musk, the Chairman of Tesla Motors, agreed: "By leading the technology change from gasoline to electric vehicles, I believe Tesla Motors has the potential to be one of the great car companies of the 21st century. The starting point is a high-performance sportscar, but the long-term vision is to build cars of all kinds, including low-cost family vehicles. Tesla Motors is one of those rare opportunities to change the world in a positive way and build a valuable company in the process."

About Tesla Motors

Tesla Motors was founded in July 2003 by Martin Eberhard and Marc Tarpenning to create efficient electric cars for people who love to drive. The chairman of Tesla Motors, a privately held company, is Elon Musk, who has led or co-led all three rounds of investment resulting in $60 million in funding. Mr. Musk has been instrumental in both corporate and product development at Tesla Motors.

The company currently employs over 80 people, including teams in California, the U.K. and Taiwan. The background and experience of Tesla Motors's employees mirrors the vehicle itself, drawing from diverse expertise in the electronics, automotive and software industries.

Tesla Motors creates vehicles that conform to all U.S. safety, environmental and durability standards. Tesla Motors's cars include modern safety equipment such as airbags, front crumple zones, side impact protection, and 2½ mph bumpers. Tesla Motors will only sell cars in the U.S. when they pass the Federal Motor Vehicle Safety Standard (FMVSS).

For more information, visit www.teslamotors.com.