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Detroit Auto Show: Tesla Model S Prototype - Wheels Blog - NYTimes.com

Is it real? Not quite, but the eventual real Model S sedan is coming into sharper focus. A nonoperational design study was displayed at the Frankfurt Motor Show last fall. The Model S shown here – one of two working prototypes, Tesla says – is the first one we’ve seen with a real interior.

What they said: “Development continues toward production for the Model S,” said Elon Musk, Tesla’s chief executive. “We now have two running prototypes, including the one on display here today.
 
2.5 years is disheartening, I can't help but feel like the horse chasing the carrot. For Tesla's sake, I hope another company doesn't beat them to the punch with an EV sedan that can do all they promised and more beforehand.

As for the first model with an interior, I could've sworn the one we rode in in NYC had an interior. Most likely not the final, refined interior, but it definitely looked clean enough to drive off the lot.
 
This was very expected and they are still only about half a year later than their original date. If they actually start selling P series cars in late 2012 that's earlier than my original personal estimate :)

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