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Tesla and Wrightspeed are using lithium-ion batteries that are more powerful, lighter and efficient than the lead acid batteries used in early electric cars or the nickel metal hydride batteries used in today's hybrids.

"The battery technology has improved," said Ron Freund, chairman of the Electric Auto Association in Palo Alto. "They keep getting better. They last longer, they're smaller and they charge faster."

In Tesla's workshop about 20 miles south of San Francisco, Eberhard and Tarpenning offered a glimpse of their first model -- a sleek two-seater called the Roadster that resembles a Lotus Elise -- but would not allow photographs. They plan to unveil it at an event for prospective buyers next month in Santa Monica.

"We're building a car for people who like to drive," Eberhard said. "This is not a punishment car."

To build the Roadster, Tesla engineers designed a sophisticated battery system with more than 8,000 lithium-ion cells and a network of computers to control them, Eberhard said. They also built an electric motor that is more than twice as powerful as earlier electric vehicles.

The Roadster will be able to drive about 250 miles on a single three-hour charge, go as fast as 135 mph, and accelerate from zero to 60 in four seconds, Eberhard said. It will cost between $85,000 and $120,000.

Named after the inventor Nikola Tesla, known for his pioneering research in the field of electricity, the company has big ambitions. Tesla executives talk about building a "new kind of car company" and hope to eventually introduce a series of models, starting at the market's high end and bringing down the price as technology improves.

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