Toyota sells part of stake in Tesla Motors

Article by Christian A., on October 26, 2014

Toyota Motor Corp. has sold a part of its stake in American electric vehicle maker Tesla Motors Inc., according to a report by the Nikkei financial newspaper. Toyota made a $50-million investment in Tesla in May 2010, just a month before the EV maker launched its initial public offering.

While the size of its current stake in Tesla remains a mystery, Toyota said at the time of the investment that it would have a 2.5-percent holds in the American company. During its IPO, Tesla set a price of $17 per share. That surge nearly 14 times to $235.29 as of October 23, 2014, in New York.

Tesla and Toyota has agreement in which the EV maker supplies batteries and motors for the electric versions of the RAV4 that went on sale in 2012. The supply agreement, however, will be terminated by the end of 2014 after the Japanese carmaker just sold 20,000 units

Tesla chief executive Elon Musk remarked that the EV maker could ink a new agreement with Toyota in the next two to three years. Aside from Toyota, Daimler has sold its stake in Tesla. Unlike Toyota, Daimler sold its entire stake to register a gain of $780 million, after buying it for only $50 million in May 2009.

If you liked the article, share on:

Topics: toyota, tesla motors

Comments

Recommended

During the past few years, many automakers have developed a love-hate relationship towards diesel engines because of strict emission standards. Automakers have built a perception that diesel engines are not...
by - May 23, 2018
It was back in 1899 when Fiat was first established in Turin, Italy. It has remained in one form or another for over a century. However, current CEO of the...
by - May 22, 2018
Mercedes-Benz has been working on refreshing its people-hauling V-Class, which has racked up more than 100,000 deliveries since 2014. But before the new model finally goes on sale sometime next...
by - May 22, 2018
BMW has just announced that they will be changing up their nomenclature. Before you start complaining, it’s actually a good thing as it makes things simpler. Frankly, some of the...
by - May 21, 2018
Alexander Schmuck, BMW spokesperson, recently confirmed that the 2019 BMW M2 Competition will finally go on sale in July, with a starting price of $58,900. BMW also revealed its options...
by - May 18, 2018