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Oaktec has been campaigning a heavily-modified Honda Insight in a series of rallies over the past few years, taking five Class-A victories in the UK Formula 1000 rally and bringing home the Class-A championship in 2006.

In 2007, Oaktec built a Honda Civic hybrid to compete in both rally and circuit competition, porting over the knowledge it gleaned from the Insight to the Civic, including the implementation of a modified CVT, which the firm found provides the best method of power delivery when coupled to a hybrid drivetrain.

Yesterday, Oaktec and Lotus Engineering announced a partnership that will help to maximize the performance of its hybrid setup through the use of new battery and control system. Along with Lotus and Oaktec, Energy Efficient Motorsport, Motorsport Development and Honda UK have been tapped to provide support as the companies develop more vehicles for third-party clients.

The crew will make their debut campaign in the Dunlop Max Sport Cup at the Rockingham circuit this Sunday, with plans to campaign in more track competitions throughout this year and next.

[Source: Lotus]

California Governor Arnold Schwarzenegger took to the podium today at Tesla's San Carlos, California facility to formally announce a new set of incentives for EV manufacturers to call Cali home. The crux of the address centered on the new CAEATFA program, approved last Wednesday, that exempts automakers from paying sales and use tax on manufacturing equipment used to build EVs. The program is expected to save automakers – and Tesla specifically – millions of dollars, and is largely in response to Tesla's original plan to produce its new sedan in New Mexico.

Tesla used the Governor's visit as an opportunity to formally announce its new "multi-use sport sedan," currently codenamed Model S, which is estimated to get 225 miles on a single charge and to cost around $60,000. However, Tesla did not announce when the sedan would go on sale, nor would it give any indication about where the new EV would be produced.

UPDATE: Official press release pasted after the jump.