Toyota Motor Corporation (TMC) is to plough US$50m into high performance electric vehicle manufacturer Tesla Motors.
The Japanese automaker’s decision to take a US$50m stake will see both companies cooperate on the development of electric vehicles, parts, production systems and engineering support.
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“I sensed the potential of Tesla’s technology and was impressed by its dedication,” said TMC president Akio Toyoda. “Through this partnership with a venture business such as Tesla, Toyota would like to learn from the decision-making and flexibility that Tesla has.”
Tesla Motors recently purchased the former GM/Toyota joint venture factory in Fremont, California, formerly known as New United Motor Manufacturing Inc or NUMMI. The plant will build the Model S sedan among other vehicles.
“We look forward to learning and benefiting from Toyota’s engineering, manufacturing and production expertise,” said Tesla CEO and co-founder Elon Musk.
TMC started leasing Prius plug-in hybrids last year, which can be charged using an external power source such as a household electric outlet. The company plans to introduce EVs by 2012.
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By GlobalDataPalo Alto-based Tesla has delivered over 1,000 Lotus-based Roadsters in North America, Europe and Asia. It is currently the only automaker in the US that builds and sells highway-capable EVs in serial production.
TMC’s stock purchase will be issued in a private placement to finish subsequent to the closing of Tesla’s currently planned initial public offering.
