Tesla and Toyota Join Forces
Toyota and Tesla Motors are embarking on a joint electric-car-building project, the companies announced yesterday. The two automakers will form a specialist team that will concentrate on developing electric vehicles, parts, production systems and coordinate engineering support.
To really seal the deal, Toyota is purchasing $50 million of Tesla's common stock directly after the close of Tesla's planned IPO. This partnership is obviously a boon to both companies. Tesla is still a start-up company, so a large investment from an established automaker like Toyota will help them immensely.
Toyota will get the benefit of Tesla's electric car expertise and so-called "venture business spirit." With a commitment to have an all-electric vehicle on the market by 2012, this partnership could help Toyota do so with a splash.
Tesla is also taking over the NUMMI factory in Fremont, CA to build its Model S and other future vehicles. Up until last month, the NUMMI factory was used by Toyota to build its Corolla and Tacoma models.
via Tesla Motors