Tesla will end battery supply agreement with Toyota this year

Article by Christian A., on May 12, 2014

A battery pack supply agreement between Tesla Motors Inc. and Toyota Motor Corp. will end this year. Toyota disclosed in May 2012 that it would buy Tesla’s battery packs for 2,600 electric RAV4 EVs over three years. Tesla chief executive Elon Musk had remarked that he expected the Japanese carmaker to extend the agreement, which had an initial value of up to $100 million based on a July 2011 filing.

Toyota, however, is expected to end production of the current RAV4 EV model this year, Tesla said in a quarterly filing. Tesla said it gained $15.1 million in revenues from the supply agreement in the first quarter ended March 31.

The termination of the Toyota supply program comes as Tesla continues to expand sales of Model S sedans globally while preparing its Model X electric crossover for delivery next year. Tesla is also readying a lower-priced rechargeable sedan that will be due in two to three years.

The electric carmaker is increasing supplies for the Mercedes-Benz B-class Electric Drive as it moves on with its plans to build a battery “gigafactory” to reduce lithium-ion cell costs by 30 percent. Both Toyota and Mercedes parent Daimler AG hold stakes in Tesla.

Toyota spokesman John Hanson said that Toyota has not disclosed plans to end its RAV4 EV program. He remarked that the project was for a specific number of vehicles planned for sales in a specific number of years.

Hanson quipped that models like the RAV4 EV sell mainly in California, which compels large carmakers to offer pollution-free vehicles. So far, Toyota has sold 1,594 electric RAV4s from 2012 to April 2014, according to reports from the carmaker. Toyota will commence next year sales of a hydrogen fuel cell sedan in California.

If you liked the article, share on:

Comments

Recommended

Tesla Motors may soon revive its plans to offer battery swapping services using a new approach. This comes as the carmaker was discovered to have filed a patent months ago...
by - September 21, 2017
There is indeed very good news for fans and enthusiasts of Mercedes-Benz’s AMG GT range: a Black Series is coming to town. This was according to a report by Australian...
by - September 21, 2017
We all know of the standard M4 and the more powerful M4 GTS model, but in between those two models is the newest M4 CS. The CS trim comes with...
by - September 21, 2017
Hyundai has unveiled to the global public its latest sedan that elegantly combines luxury and performance in one innovative package under its Genesis luxury brand – the new Genesis G70....
by - September 21, 2017
A lot of people have been questioning BMW’s design direction lately, albeit the beautiful Z4 concept and the alluring 8 Series concept are excluded from this narrative. This began after...
by - September 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries