Toyota Motor Corp., the world’s largest automaker, is acquiring a $50 million stake in Tesla Motors Inc. and will develop electric vehicles with the California company.
Tesla will buy a closed Toyota joint-venture factory in California to build its Model S and other cars, Governor Arnold Schwarzenegger said in a statement today. The companies will cooperate on developing electric vehicles, parts and production systems and engineering support.
The deal brings together Toyota, the world’s biggest seller of hybrid autos, and Tesla, the only company now selling U.S. highway-legal battery-powered cars, as U.S. and California emission rules push carmakers to offer less-polluting vehicles. Toyota’s investment comes as Palo Alto, California-based Tesla, which sells the $109,000 Roadster electric sports car, prepares to raise about $100 million in an initial share sale.
Full story: Tesla Gets $50 Mln From Toyota, Will Build Electric Cars in CA – Bloomberg