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Tesla, Toyota partner on electric vehicles

Wednesday, May 26, 2010
By Gina Roos

teslaPalo Alto, Calif. — Tesla Motors and Toyota Motor Corp. (TMC) recently announced they will work together to develop electric vehicles (EVs), parts, production systems and engineering support. Tesla also purchased the NUMMI vehicle manufacturing plant in Fremont to produce the Model S EV.

Under the agreement, TMC has agreed to purchase $50 million of Tesla’s common stock issued in a private placement.

TMC introduced the first-generation Prius hybrid vehicle in 1997, and has produced approximately 2.5 million hybrids. Late last year, TMC started to lease the Prius Plug-in Hybrids, which can be charged using an external power source such as a household electric outlet. The company also plans to introduce EVs into the market by 2012.

Tesla’s goal is to produce affordable electric cars for mainstream buyers. Tesla has delivered more than 1000 Roadsters to customers in North America, Europe and Asia. Tesla designs and manufactures EVs and EV powertrain components. The company says it is currently the only automaker in the U.S. that builds and sells highway-capable EVs in serial production.

Tesla also acquired the recently-closed New United Motor Manufacturing, Inc. (NUMMI) vehicle manufacturing plant in Fremont, California. Tesla plans to begin production of its Model S electric vehicle (EV) at the plant in 2012 as well as future vehicles.

The Model S sedan, which Tesla unveiled in March 2009, has an anticipated base price of $49,900, including a federal tax credit. With an optional extended-range battery pack, the Model S will travel over 300 miles per charge.

The NUMMI factory, operated by Toyota Motor Corporation in partnership with General Motors Corp., used to produce Toyota’s Corolla and Tacoma vehicles.

The plant is capable of producing 500,000 vehicles per year or approximately 1 percent of total worldwide car production.

Tesla will partly finance the new facility with a $465 million loan from the U.S. Department of Energy (DOE), which will also support the construction of a manufacturing facility for electric powertrains in Palo Alto, California.

See related article:

DOE closes $465M loan to Tesla Motors

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