- Jul 20, 2011
Tesla scores $100 million Toyota RAV4 EV-related contract
Buried within its latest U.S. Securities and Exchange Commission (SEC) filing, Tesla Motors revealed that its deal with Toyota is to be pumped up, with the Japanese automaker agreeing to fork over an additional $100 million to Tesla. Initially, word of the agreement brought trading of Tesla stock (NASDAQ ticker symbol: TSLA) to an immediate halt. However, the freeze was short-lived, with TSLA shares currently trading in the ballpark of $29.
For the record, Tesla's SEC filing reads:
On July 15, 2011, Tesla Motors, Inc. entered into a Supply and Services Agreement with Toyota Motor Corporation for the supply of a validated electric powertrain system, including a battery, charging system, inverter, motor, gearbox and associated software, which will be integrated into an electric vehicle version of the Toyota RAV4. Additionally, Tesla will provide TMC with certain services related to the supply of the Tesla Battery and Powertrain. Pursuant to the Agreement, TMC will pay Tesla approximately $100 million. Production of the RAV4 EV is expected to begin in 2012 and to continue through 2014.
Basically, this agreement is nothing more than an extension of the Toyota-Tesla deal that became official back in May of 2010. An extra $100 million is nothing to sneeze at and, according to Smart Planet, could assist Tesla with development of the upcoming Model S.
Live photos copyright ©2010 Sebastian Blanco / AOL
[Source: U.S. Securities and Exchange Commission, Smart Planet]