Tesla partners Toyota in EV production, buys closed plant

Tesla partners Toyota in EV production, buys closed plant

Toyota and Tesla have announced that they will partner each other in the production of electric cars. EV specialist Tesla will acquire Toyota’s New United Motor Manufacturing Inc (NUMMI) plant that was recently closed down. NUMMI, located across the San Francisco bay from Tesla’s Palo Alto HQ, was a former joint venture between Toyota and General Motors.

Tesla will be looking to employ around 1,000 more staff. CEO Elon Musk said that Tesla’s next model, a sleek four-door coupe style called Model S, will account for about 20,000 units a year when it debuts in 2012. The $40,000 Model S will be affordable for the brand’s standards, joining the over $100,000 Roadster.

Toyota will be investing $50 million in Tesla in exchange for common stock after the latter’s initial public offering is completed. What does the world’s biggest automaker stand to gain here? Tesla’s lean and rapid product development is one, as well as its electric vehicle technology. Toyota is still using nickel-metal-hydride batteries in its hybrids for instance, while Tesla is using lithium-ion. In return, Tesla will gain from Toyota’s scale, engineering resources and access to its massive supplier base.

“Decades ago, Toyota was also born as a venture business. By partnering with Tesla, my hope is that all Toyota employees will recall that venture business spirit and take on the challenges of the future,” Toyota president Akio Toyoda said about the partnership.

See and read more of the Tesla Model S here.

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Jacob Alexander

Jacob Mathew Alexander has been a motoring nut for as far as he can remember and has recently turned his passion into writing. After spending some time in the same industry in the UK, Jacob's work is from a slightly different perspective.

 

Comments

  • wohoo on May 21, 2010 at 5:00 pm

    so, what about sticky accelerator pedal on EV vehicle? :p

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  • jl@ipl on May 21, 2010 at 5:08 pm

    Can’t help it.

    The white car look similar with Gen2.

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  • still skeptical of EVs, honda boffins? hmmm?

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  • think on May 21, 2010 at 10:20 pm

    as what honda said previously,,hybrids are the future of motoring unlike ev’s which are good for technology showcase..the tesla sedan looking geogeous..

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  • There goes petrol stations… we’ll see electric vehicles on the road by 2012!

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  • odi862 on May 21, 2010 at 11:54 pm

    Tesla and Toyota can keep making progress…..although now there are many skeptics, I hope one day they or any other makers will maker breakthrough in EV. I saw the review of Tesla car that use Lotus chassis made by Top Gear, it was still not convincing but they are going the right way.

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  • Bukit Jambul Joe on May 22, 2010 at 12:22 am

    Ironic isn’t it, Honda announced that they were ditching EV and going back to fuel efficiency, while Toyota is teaming up with Tesla. These nips are really cooking. LOL

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  • azrai on May 24, 2010 at 7:59 am

    Tesla used Lotus cars as their platform right?

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