Summary
This Form 8-K filing from Tesla Motors, Inc. on July 20, 2011, reports a significant material definitive agreement with Toyota Motor Corporation (TMC). Tesla has entered into a Supply and Services Agreement with TMC to provide its validated electric powertrain system, including the battery, charging system, inverter, motor, gearbox, and software, for an electric version of the Toyota RAV4. This agreement is a substantial validation of Tesla's technology and positions the company as a key supplier in the burgeoning electric vehicle market. The agreement stipulates that TMC will pay Tesla approximately $100 million for these components and related services. Production of the RAV4 EV utilizing Tesla's powertrain is scheduled to commence in 2012 and continue through 2014. This partnership underscores Tesla's growing influence and technical capabilities in the automotive industry, leveraging its expertise to equip a mainstream vehicle from a global automotive giant with its advanced electric drive technology.
Key Highlights
- 1Tesla entered into a significant Supply and Services Agreement with Toyota Motor Corporation (TMC).
- 2The agreement involves Tesla supplying its validated electric powertrain system for an electric version of the Toyota RAV4.
- 3The total value of the agreement for Tesla is approximately $100 million.
- 4Production of the RAV4 EV using Tesla's powertrain is expected to begin in 2012 and run through 2014.
- 5This partnership represents a major endorsement and revenue opportunity for Tesla's electric vehicle technology.
- 6Tesla had previously engaged with TMC on RAV4 EV development and TMC had invested in Tesla during its 2010 IPO.