Tesla Motors Receives Research and Development Grant from the California Air Resources Board and California Energy Commission

California Air Resources Board and California Energy Commission jointly recognize pioneering technology advanced by Tesla Motors

SAN CARLOS, Calif. -- (May 25, 2007) -- Tesla Motors, a manufacturer of high-performance production electric cars, received $561,000 for the development of a UL approved 16 kw public charging station.

According to the 2007 CARB (California Air Resources Board) Alternative Fuel Incentive Program (AFIP) Proposal Solicitation: “Electric fuel vehicles have the largest potential to reduce climate change emissions and petroleum dependency relative to any other alternative fuel vehicle under consideration.”

Under the grant, the charging station technology developed by Tesla could be used to power up electric vehicles throughout the state of California. Other grant recipients include the University of California, Berkeley, the University of California, Davis and the Electric Power Research Institute.

“California has a long history of supporting green technology and encouraging automobile manufacturers to meet increasingly stringent vehicle emissions requirements,” said Diarmuid O’Connell, Director of Corporate Development at Tesla Motors, “This sizeable grant offered jointly by the California Air Resources Board and the California Energy Commission is a significant vote of confidence for Tesla Motors and acknowledges the pioneering work Tesla Motors is doing in the development of zero-emissions electric vehicles and charging station technology.”

About Tesla Motors

Tesla Motors develops and manufactures vehicles that exemplify “Design, Performance, and Efficiency” while conforming to all U.S. safety, environmental and durability standards. The company has taken over 400 reservations for its first car, the Tesla Roadster, a stylish, high performance sports car that accelerates to 60 mph in about 4 seconds with extreme energy efficiency. Tesla expects to start shipping Tesla Roadsters to customers in the fall. Tesla Motors was founded in July 2003 by Martin Eberhard and Marc Tarpenning to create efficient electric cars for people who love to drive. Tesla Motors currently employs more than 200 people, including teams in California, Michigan, the U.K. and Taiwan. For more information, visit www.teslamotors.com.