Tesla's first customer is Norwegian electric car maker TH!NK and their second generation City car. The initial deal is worth $43 million with $3 million of that this year and the rest in 2008. The new TH!NK was originally planned to have a Zebra molten salt battery. TH!NK will instead use a custom-designed lithium ion battery pack from Tesla.
Tesla Energy Group, a New Division of Tesla Motors, Signs Development and Supply Agreement Worth $43 Million with Think of Norway
New Division of Tesla Motors to Develop and Market Battery Packs for Clients in Automotive and Other Industries
SAN CARLOS, California -- (May 22, 2007) -- Tesla Energy Group, a newly formed division of Tesla Motors, recently signed an agreement to supply Think Global with lithium-ion battery packs for their line of "TH!NK city" electric cars. The supply agreement covers the development and delivery of battery packs starting in December 2007 and continuing through 2008. The supply agreement represents up to $43 million in revenues, of which approximately $3 million is expected to be realized in 2007 with the remainder in 2008.
Tesla Energy Group was formed in December of 2006 to develop and market custom designed battery packs for customers in a wide range of industries, utilizing Tesla's patent pending technology for the development of high-power, high-capacity battery packs with superior performance and safety characteristics. Tesla Motors created Tesla Energy Group in response to demand from outside companies for advanced lithium-ion battery pack technology for automotive and other industrial use.
"The establishment of the Tesla Energy Group adds a significant new dimension to the business of Tesla Motors," said Martin Eberhard, CEO of Tesla Motors. "Tesla Energy Group will provide additional sources of operating income for Tesla Motors while accelerating our competitive advantage in battery pack design and manufacturing. Both of these support our core business of developing and marketing extraordinary electric cars such as the Tesla Roadster."
"Tesla Energy Group provides Think with an advanced battery pack design with impressive performance said Jan-Olaf Willums, CEO of Think.
Thinks mission is to create the most environmentally friendly vehicles in the world in a commercially successful way. The second generation TH!NK city vehicle combines award-winning design with comfort and convenience features that make it a pleasure to drive. The new vehicle is expected to be launched in Norway in 2007, and selected international markets in 2008. More information about Think can be found on http://www.think.no/.
About Tesla Motors
Tesla Motors develops and manufactures vehicles that exemplify "Design, Performance, and Efficiency" while conforming to all U.S. safety, environmental and durability standards. The company has taken over 400 reservations for its first car, the Tesla Roadster, a stylish, high performance sports car that accelerates to 60 mph in about 4 seconds with extreme energy efficiency. Tesla expects to start shipping Tesla Roadsters to customers in the fall. Tesla Motors was founded in July 2003 by Martin Eberhard and Marc Tarpenning to create efficient electric cars for people who love to drive. Tesla Motors currently employs more than 200 people, including teams in California, Michigan, the U.K. and Taiwan. For more information, visit www.teslamotors.com.