Toyota Pays Tesla $100 Million for Electric Rav-4 Deal
Toyota is paying Tesla $100 million, up from $60 million, in a deal to produce battery packs and motors for the electric Rav-4.
The RAV4 EV, set to go into production next year, was rumored to only be available for fleet sales, but we shed light on those claims earlier this week. Toyota said in a press release that the electric SUV would be available to the public.
The EV SUV was first introduced some 14 years ago, but never fared well, like most other electrics during that time. But this time around may be different, considering more customers are taking the electric path, not to mention battery technology has improved exponentially since then. Toyota anticipates learning from the electric vehicle start-up company’s savviness in electric battery technology, while perhaps having the Tesla-touch boost sales. As part of the give-and-take deal, the Japanese automaker will assist the electric roadster company with its expertise in mass production.
The agreement will run until 2014, in which Tesla, together with Toyota, will build lithium-ion battery packs for the RAV4 at the NUMMI auto assembly plant in Fremont, California. Tesla’s new Model S electric sedan will also be produced at the same facility.