Report: Tesla won’t be developing electric-vehicles with Toyota

Tesla Model S

If you’re probably wondering whether or not Tesla and Toyota will jointly produce electric-vehicles as a part of their partnership, here’s your answer. In a recent filling with the Securities and Exchange Commission, Tesla said that it may never get to the point where it will jointly develop electric-vehicles with Toyota.

The details of the document show that the partnership between the two companies is a “loose engagement” depending on how well Tesla’s IPO goes. Basically, the deal between the two companies is less of a commitment and more of “an intention to cooperate” on research and development. Tesla said that Toyota will provide support on expertise including parts, production and engineering for the Model S.

“We have not entered into any agreements with Toyota for any such arrangements, including any purchase orders, and we may never do so,” the filing says “As a result, we anticipate that we will generate limited revenue from selling electric vehicles in 2012 until the launch of our Model S.”

As a part of the agreement, Toyota will 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 IPO.

– By: Omar Rana

Source: NYT