Tesla has 3 models planned. They seem to be:
1) Roadster – $100K BEV sports car
2) Whitestar – $50K performance sedan
3) Bluestar – $30K range range extended EV

So their third model would compete directly with the Volt.

Also note that Tesla is already talking with some of the major car manufacturers.

They don’t (or won’t) compete as they are designed for different markets. If Tesla ever decides to build a mass market car on par with what GM is (will be) offering they won’t be able to compete with GM.

Regarding Tesla’a battery system… because of the limited (relatively speaking) number of vehicles they are making building a system from essentially off the shelf cells did make the most sense. Hopefully they can switch to using mass produced packs someday.

Someone mentioned doing EV conversions… I actually was starting down that path myself earlier this year, joining the ranks of thousands of others who have already done so. But with the news that the Volt could be available by late 2010, and others could be out shorty there after, I’m saving the 10 grand I think it would have cost me to buy and convert a used S-10, and put it toward possibly the Volt (3 years is too far out for me to commit to any future vehicle purchase… it took me 10 months of test drives and research to decide on my last new car purchase).

Oh yea, even if I could afford the Tesla Roadster, to be allowed to buy one you have to be within a certain distance of one of their company owned showrooms. For me the closest would be New York City, a drive of 243 miles… a little further than the 220 mile range of the Roadster