Toyota Motor Corporation and Tesla Motors have announced that they intend to cooperate on the production of electric-vehicles, parts and production systems, and engineering support. 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.
Both companies intend to form a team of specialists to further those efforts.
“I sensed the great potential of Tesla”s technology and was impressed by its dedication to monozukuri (Toyota”s approach to manufacturing),” said TMC President Akio Toyoda.
“Toyota is a company founded on innovation, quality, and commitment to sustainable mobility. It is an honor and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla,” said Tesla CEO and cofounder Elon Musk. “We look forward to learning and benefiting from Toyota”s legendary engineering, manufacturing, and production expertise.”
Tesla also announced that it has purchased the former NUMMI factory in Fremont, California, where it will build the Model S sedan and future Tesla vehicles.
“The Tesla Factory effectively leverages an ideal combination of hardcore Silicon Valley engineering talent, traditional automotive engineering talent and the proven Toyota production system,” said Musk. “The new Tesla Factory will give us plenty of room to grow.”
The Tesla Model S, said to be the first pure electric premium sedan, is designed from the ground up. The Model S sedan will start at $49,900 (including a federal tax credit) and will get a range of 160 miles. With an optional extended-range battery pack, the Model S can travel over 300 miles per charge. 0 to 60 comes in just 5.6 seconds with a top speed that is limited to 130 mph.
Production of the Tesla Model S is expected to start in 2012.
Tesla Model S:
– By: Omar Rana