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Tesla rolls out Model S hatchback, plans late 2011 start

Amidst thumping techno and inside his own rocket factory, Tesla founder and CEO Elon Musk pulled the cover off his much-anticipated second car onThursday. The Model S five-door hatchback will go into production in late 2011 at a rate of 20,000 per year. Prices will start at $49,900 for the base model, a price that assumes the $7,500 current Federal tax credit available.

Toyota Prius points the way to design future

For a glimpse of Toyota's future design trends, check out the Prius. The third generation, debuting Monday in Japan, stays true to the line's role as a vanguard of futuristic styling and sports many new elements that will be popping up soon in other models. Chief among these are the sharply creased corners, the forward placement of the Toyota badge, a lowered grille and styling that Toyota's global design chief Wahei Hirai calls "free-form geometrics." The goal was to create an avant-garde, high-tech look that also screams green.

Ford reaches agreement to sell Volvo to Geely for $1.8 billion

Ford has reached an agreement to sell its Swedish brand Volvo to Chinese carmaker Geely for about $1.8 billion in a multinational sale expected to close in the third quarter of this year. The pending agreement was announced onSunday morning, and Ford will continue to supply powertrains, stamping and other parts to Volvo after the sale. If it closes, the landmark deal delivers the premium Volvo brand--long a benchmark for automotive safety--to a Chinese firm that has ambitious plans for growth.