Tesla to ride Toyota RAV4 EV production, land $100 million

Summary:Tesla will garner $100 million from Toyota Motor Corp. for producing the electric powertrain system for the RAV4 EV.

Tesla said Wednesday that it will garner $100 million from Toyota Motor Corp. for producing the electric powertrain system for the RAV4 EV.

Toyota confirmed that the RAV4 EV was on tap for 2012 in response to a bevy of news reports.

In a filing with the Securities and Exchange Commission, Tesla said that it entered a supply and services agreement with Toyota on July 15. Under the deal, Tesla will supply the electronic powertrain system including a battery, charging system, inverter, motor, gearbox and associated software.

Tesla will also provide services to Toyota.

The two automakers have been partners and the two companies started development in July 2010 . The companies sealed a services agreement in October 2010. Production of the RAV4 EV will start in 2012 and continue through 2014.

In the end, the revenue from Toyota will give Tesla some air cover as it develops its sedan.

Related:

This post was originally published on Smartplanet.com

Topics: Innovation

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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