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AutoblogGreen had the rare opportunity on Friday to chat with Toyota CEO and president Akio Toyoda. During the conversation, he revealed that a prototype vehicle with a Tesla electric drive unit was under construction. Tesla's Chief Technology Officer, J.B. Straubel, has confirmed this to CNN Money, saying that the Silicon Valley company is indeed preparing two mule vehicles for Toyota. Tesla battery packs, power electronics and motors are being installed into Toyota bodies.

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AutoblogGreen had the rare opportunity on Friday to chat with Toyota CEO and president Akio Toyoda where he revealed a prototype vehicle with a Tesla electric drive unit was under construction. Tesla CTO JB Straubel has now told CNN Money that the Silicon valley company is preparing two mule vehicles for Toyota. Tesla battery packs, power electronnics and motors are being installed into Toyota bodies.

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During a interview with a group of American media this afternoon in Nagoya, Japan, Toyota president Akio Toyoda revealed that his company is already in the process of building a prototype electric vehicle with a Tesla battery pack. The statement came in response to questions about the relationship between Toyota and Tesla. As time ran out, we did not have an opportunity for further follow-up or clarification.

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Tesla Model S – Click above for high-res image gallery

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Tesla Model S - Click above for high-res image gallery

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Tesla Model S in motion - Click above for high-res image gallery

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Elon Musk and Dr. Thomas Weber with the Tesla Roadster and the smart ed

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Chalk this one firmly in the rumormill category, but Johnathan Bodily over at Street Import Online is reporting that he's seen what appears to be an electric smart fortwo at Tesla's facility in San Carlos plugged into a Tesla-branded charging station. What's more, this particular smart differed from other fortwos in that it lacked a tail pipe. We know that Daimler has been running second-generation smart ed's (with lithium ion batteries from an unknown source) around various locations for a litt

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For the Tesla Roadster, the engineers at Tesla Motors decided to go with a batter pack made up of almost 7,000 lithium-ion cells to power the lightweight sports car. Some people approved (how can you say no to an EV that goes 0-60 in under four seconds?), and some people said the decision was a huge mistake. With about 250 Roadsters already "sold" (the car won't be available until late next year), it's obvious some people are ready to invest in this car and Tesla's Energy Storage System technolo

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