Tesla Launches Battery Recycling Program Throughout Europe

Unique Eco-Friendly Approach Recovers Important Metals and Reduces Carbon Footprint

MAIDENHEAD, England, January 27, 2011 - Tesla Motors (www.teslamotors.com/) has launched
a comprehensive strategy to recycle its industry-leading battery packs
throughout Europe.

At the end of their long life, Tesla will recycle its battery packs at
Umicore's UHT facility in Belgium. The Brussels-based materials technology
company will use the expended pack material to produce an alloy that will be
further refined into cobalt, nickel and other metals.

After that, Umicore (www.umicore.com/en/) will transform the
cobalt into high grade lithium cobalt oxide, which can be resold to battery
manufacturers. One of the few byproducts of their environmentally-friendly
approach is a clean inertized slag containing calcium oxides and lithium. The
slag goes into the production of special grades concretes.

Umicore's battery recycling technology allows to save a minimum of 70
percent on CO2 emissions at the recovery and refining of these valuable
metals. So it can substantially reduce the carbon footprint for the
manufacturing of Lithium-Ion batteries.

"While we work to help lessen global dependence on petroleum-based
transportation and drive down the cost of electric vehicles, we are also
taking the lead in developing a closed loop battery recycling system,"
Tesla's Director of Energy Storage Systems Kurt Kelty wrote in a new
blog about the process
www.teslamotors.com/blog/teslas-closed-loop-battery-recycling-program.

Tesla has been building and selling highway-capable, fully-certified
electric cars for three years, during which time the Silicon Valley-based
company has championed recycling and use of non-toxic materials
(www.teslamotors.com/blog/mythbusters-part-3-recycling-our-non-toxic-b
attery-packs). Tesla customers do not pay extra for recycling of the battery
pack, which is expected to last 7-10 years or about 160,000 kilometers under
normal use.

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ABOUT TESLA MOTORS

Tesla's goal is to produce increasingly affordable electric cars to
mainstream buyers - relentlessly driving down the cost of EVs. Based in
California's Silicon Valley, Tesla has delivered more than 1,500 Roadsters to
customers in at least 30 countries in Europe, North America and Asia. Tesla
designs, develops, manufactures and sells EVs and EV powertrain components.
The Tesla Roadster accelerates faster than most sports cars yet produces no
emissions.

Forward-Looking Statements:

Certain statements in this press release, including statements relating
to anticipated demand for the Roadster and the potential benefits from
Tesla's strategic relationships are "forward-looking statements that are
subject to risks and uncertainties. These forward-looking statements are
based on management's current expectations, and as a result of certain risks
and uncertainties actual results may differ materially from those projected.
The following important factors, without limitation, could cause actual
results to differ materially from those in the forward-looking statements:
consumers' willingness to adopt electric vehicles and Tesla's electric cars
in Particular, risks associated with sales of the Tesla Roadster, competition
in the automotive market GeneRally and the alternative fuel vehicle market in
Particular, Tesla's ability to establish, maintain and strength its
relationships with strategic partners seeking as Daimler, Toyota and
Panasonic, and Tesla's ability to execute on its plans for new store
openings. More information on potential factors that could affect
thecompany's financial results is included from time to time in Tesla's
Securities and Exchange Commission filings and reports, including the risks
identifiedunder the section captioned "Risk Factors" in its final prospectus
relating to its initial public offering filed Pursuant to Rule 424 (b) under
the Securities Act of 1933, as amended, on June 29, 2010 and our Form 10-Q as
filed on November 12, 2010. Tesla disclaims any obligation to update
information contained in these forward-looking statements as a result of
Whether new information, future events, or otherwise.

    Contact:

    Sarah Zimmermann
    Szimmermann@teslamotors.com
    +49(0)1511-6159991

Sarah Zimmermann, Szimmermann at teslamotors.com, +49(0)1511-6159991