Tesla Will Be Paid $60 Million to Develop New Toyota RAV4 EVs
In July of this year, we brought you news that Silicon Valley electric vehicle start-up Tesla and Japanese automotive powerhouse Toyota had inked a deal to build electric Toyota RAV4s and today we have more details about the partnership.
In a filing with the Securities and Exchange Commission, Tesla has revealed more details about the nature of its partnership with Toyota. Under the terms of the agreement, Tesla will develop a battery, motor, gearbox, "power electronics module" and all the necessary software for an all-electric version of Toyota's RAV4 compact SUV.
For their services, Tesla will be paid by Toyota some $60 million over the term of the agreement. Both parties will agree on the final specifications, payment amounts and schedule and the expected results and their schedule within the next 60 days. Toyota announced when the project began in July that the RAV4 EV would reach the market in 2012.
That sum comes in addition to the stake Toyota has already acquired in Tesla. Prior to the initial deal in announced in July, Toyota had agreed to buy $50 million of Tesla's common stock in a private placement transaction that took effect when Tesla filed its Initial Public Offering, which netted the EV-maker $226 million. Depending on the amount of preferred and common stock offered, Toyota may own up to 22-percent of Tesla now, though the companies have not disclosed the exact ownership arrangement.
As part of the deal, Toyota also sold a portion of its shuttered NUMMI factory in Fremont, California, where the two companies will produce the RAV4 EV together. Tesla also plans to use the plant to produce its upcoming Model S electric sedan.