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Electric vehicle manufacturer Tesla Motors has been a pacesetter when it comes to lithium-ion powered cars, but with one important caveat: only the rich can afford their 9,000 Tesla Roadster. Even as a second model is being planned (Tesla S), a six- or seven-passenger sedan expected to retail for close to ,000 when it goes on sale in 2011 or 2012, only people who currently purchase BMW, Mercedes and Lexus models will be able to afford these pricey cars.

Mass Produced Tesla Model

Now, Tesla Motors says that they plan on mass producing a third model that should retail for just under ,000 thanks to a 5 million low interest loan from the U.S. Energy Department. Expected to go on sale in 2016, the unnamed Tesla vehicle could help the automaker expand from the exotic car segment to a family friendly, budget preserving segment.

For certain, the Tesla Roadster hasn’t been much of a seller yet. Just over 700 cars have been produced on a Heath, UK assembly line, a facility that also builds Lotus models. Tesla is looking at a California facility for the Tesla S, a model that may sell as many as 20,000 units annually, thanks in part to a 00 federal rebate.

Recently, Tesla announced that the company was investing 0 million to open up a powertrain plant to be located on the grounds of the Stanford Research Park; the company is currently looking at several sites in Southern California for its manufacturing base. Tesla also made it known that it isn’t interested in NUMMI, the former joint Toyota-GM venture that is slated to close down next Spring.

Extended Range Helps Tesla

Despite its high price, the Tesla Roadster has a strong advantage when it comes to range, able to travel as far as 244 miles on a single charge. This compares to about one hundred miles for the upcoming Nissan and proposed Coda Automotive models or to the Chevy Volt which will travel some forty miles before a small gas engine kicks in to extend its range.

The Tesla S is expected to be offered with several different battery range options of 160-, 230- and 300-miles. Tesla is engineering the “S” to allow owners to swap out batteries as needed which means that a buyer could choose the shorter range battery when ordering their car, but rent a larger range battery if needed. No word yet on what sort of battery option would be made available for the third Tesla model.