Tesla Motors and Toyota enter electric vehicle partnership
Tesla Motors, Inc. and Toyota Motor Corporation announced that they intend to cooperate on the development of electric vehicles (EVs), parts, and production system and engineering support.
The two companies intend to form a specialist team to further those efforts. Toyota has agreed to purchase $50 million of Tesla’s common stock issued in a private placement to close immediately subsequent to the closing of Tesla’s currently planned initial public offering.
Tesla will purchase the New United Motor Manufacturing, Inc. (NUMMI) automobile manufacturing plant in Freemont, California, to produce their upcoming Model S EV.
“This is one of the most exciting days in Tesla history as we are announcing this historic partnership. This consists of three major areas: Toyota is making a major investment in Tesla, we will be purchasing the NUMMI plant and making the Model S and other cars there, and finally we will create some electric vehicles together,” said Tesla Motors CEO Elon Musk.
Tesla designs and manufactures EVs and EV powertrain components. It is currently the only automaker in the U.S. that builds and sells highway-capable EVs in serial production. Tesla’s stated goal is to produce increasingly affordable electric cars for mainstream buyers – relentlessly driving down the cost of EVs. Read about another green auto innovation here.