Toyota-Tesla Partnership Reaches Crossroads: Japanese Company Has 2.4 Percent Stake, Bought Batteries for RAV4 EVs
Tesla announced that Toyota Motor Corp will end its multmillion dollar arrangement with the electric car company, which supplies motors and battery packs for the Japanese automaker's RAV4 models.
According to Bloomberg News, Toyota owns a 2.4 percent stake in Tesla and said in May 2012 that for three years it would buy Tesla's batteries to be placed in 2,600 electric RAV4 EVs.
"Toyota is expected to end the current RAV4 EV model this year," Tesla said Thursday in a quarterly filing. "Our production activities under this program are expected to end in 2014."
The deal had generated $15.1 million last quarter that ended on March 31. Tesla Chief Executive Officer Elon Musk previously stated he believed the program, initially worth $100 million, would be extended beyond the three-year agreement, Bloomberg reported.
However, Toyota spokesman John Hanson said the company hasn't announced plans to conclude the program.
"This was a project for a specific number of vehicles that we planned to sell for a specific number of years," Hanson said. "We have not made any announcement about the relationship or what we'll do with Tesla in the future."
Tesla, which is planning to build the largest battery plant in the world, is gearing up to develop its new electric Model X crossover expected for delivery in 2015. The company is also expected to churn out more of its flagship vehicle, the Model S sedan, globally as well as produce lower-priced rechargeable versions in the next two to three years.
Tesla's battery "gigafactory" will cut lithium-ion cell costs by 30 percent and will supply components for the Mercedes-Benz B-Class car, according to Bloomberg.
Between 2012 and April this year, Toyota has sold 1,594 RAV4s, according to company reports.
Amid a California law that require large automakers to produce pollution-free vehicles, Toyota will begin selling a hydrogen fuel cell sedan next year.
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