Lexus Prius III

[TEG]

It is said that one of the motivations to start Tesla was that the Prius was just a bit too bland and downscale for some of the well of celebs and captains of industry that want a "green" choice. We know that "Whitestar" and "Bluestar" will have some kind of competition when they show up on the scene.

Apparently Toyota plans an upmarket version of the next gen Prius to be sold under the Lexus band:

Lexus Hybrid - Future Vehicles - Motor Trend

Coming Soon: Third-Gen Prius, Hybrid-Only Lexus | Autopia from Wired.com

This might be a PHEV...

[BBHighway]

The big question is will they finally make it a plug in, or offer a plug-in version of it.

I'm guessing not before 2010. After that, with high gas prices and several competitors offering variations on the plug-in concept, Toyota will be forced into it, or else they will lose their green halo.