The companies announced a deal yesterday in which Tesla will buy a defunct Toyota plant in California, and Toyota will purchase $50 million of Tesla stock.
In a move that may provide a spark for the electric automobile industry, Toyota, the world's largest automaker, is teaming up Tesla Motors Inc, the makers of the only highway-legal all-electric car in the United States.
The companies announced a deal yesterday in which Tesla will buy a defunct Toyota plant in California where it will produce the model S, an electric sedan slated for 2012.
Toyota, meanwhile, will buy $50 million worth of Tesla stock, and the two companies announced Thursday that they will work together to develop new electric vehicle technologies and refine manufacturing methods.
In this symbiotic business deal, Tesla will likely benefit from direct knowledge of Toyota's economy of scale and links to a vast supplier base.
Toyota, for its part, might get a boost in its competition with other carmakers over the growing environmentally friendly vehicle marketplace. Tesla's advanced lithium-ion batteries, for example, might steer the way for Toyota as the Japanese automaker looks to replace the older nickel-metal hydride units found in its hybrid Prius.
The news of the deal might add bit of much-needed polish to Toyota's public image, which has been battered by the ongoing brouhaha and recalls regarding unintended accelerations that have been implicated in motorists' deaths.