More details emerge on Tesla-Toyota-NUMMI agreement - it's far from a done deal
Green Car Advisor reports that Tesla Motors has updated its regulatory filing to include information about the Toyota-NUMMI deal. The filing had to be updated for Tesla's initial public offering, which is expected by the end of the year. It's from this regulatory filing that we learned that the $42 million investment by Tesla will only go towards purchasing the NUMMI facility and does not include some 200 acres of land adjacent to the site, nor does it include the equipment found within the plant. Without all of that equipment, the price that Tesla paid for NUMMI is not quite the bargain we once thought it was.
In addition, the filing reveals that Toyota's $50 million Tesla stock purchase is only guaranteed if Tesla goes public before the close of the year. If Tesla fails to go public by the end of 2010, Toyota can completely back out from its proposed investment in Tesla stock or renegotiate a new agreement.
Now, none of this implies that the deal will fall through. It simply means that there are some important details to work out before everything is finalized. Tesla's vice president of communications, Ricardo Reyes, put it best when he told Green Car Advisor, "That's how you do a deal like this. You agree to do do it, then you work out the details."
[Source: Green Car Advisor]
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