X Prize dangles $10 mln for fuel-efficient car

By Karey Wutkowski

NEW YORK (Reuters) - More than 60 teams from nine countries have lined up to chase a $10 million prize for making a green supercar that smashes records for fuel efficiency, organizers of the competition said on Thursday,

The initial list of teams signed on for the Automotive X Prize competition range from California-based electric car start-up Tesla Motors to Cornell University in New York.

"We're not talking about concept cars," said Peter Diamandis, chief executive of the X Prize Foundation, at the event to mark the launch of the competition at the New York auto show. "We're talking about real cars that can be brought to market."

The goal is to create a commercially viable car that gets at least 100 miles to the gallon. In late 2009, qualifiers will crisscross the United States in a stage race designed to test the vehicles on speed and the distance they can travel. The race will also test the vehicles in traffic and a range of terrain and weather conditions in determining a winner.

A few early contenders rolled quietly into the New York auto show on Thursday, some on three wheels. Others, like the Hybrid Attack from a high school team out of Pennsylvania, sported a more traditional speedster silhouette.

Tesla, which is owned by PayPal creator Elon Musk, has built an electric sports car that can travel 245 miles on a charge and reach 60 miles per hour in 4 seconds. The sold-out $98,000 Tesla Roadster went into production this week.

"We desperately need cars that are clean and efficient and safe and attractive to everyday buyers," said New York Mayor Michael Bloomberg at the launch.

None of the major automakers has signed up to join the X Prize competition although many, including Toyota Motor Corp and General Motors Corp, have electric or partly electric vehicles in development that are expected to come to market in the next several years.