BYD to face Toyota-backed e-car rival in California

Shanghai, May 21 (Gasgoo.com) After Chinese electric car maker BYD Auto announced last month that it would establish its U.S. headquarters in Los Angeles, Toyota-backed local Tesla Motors Inc. plans to start making electric cars next year at a new plant in Northern California, Xinhua News reported today.

Toyota Motor is acquiring a $50 million stake in Tesla Motors and will develop electric vehicles with the California company, which plans to start making a sports sedan in 2012. Tesla has built only 1,000 high-performance Roadster electric sports cars largely assembled in England so far.

Tesla previously considered locating its factory in Downey, Long Beach and cities outside of California, but it said it settled on the Fremont property because of the amount of existing auto factory infrastructure that is still usable. It will cooperate with Toyota on the development of electric vehicles and parts.

The BYD North American sales headquarters in Los Angeles will sell the company's alternative-energy cars. The BYD e6 all-electric car, which has passed all necessary tests locally, will go on sale in the U.S. this year, priced at $40,000 or so.

The e6 car's foray into the U.S. market will mark a historic moment for Warren Buffet-backed BYD, a legendary electric carmaker that will have to face local rival Tesla after choosing California as a gateway to the American market.