Tesla, Toyota to team up on electric car (Silicon Valley)
Gov. Arnold Schwarzenegger on Thursday made the surprise announcement that electric car company Tesla Inc. and Toyota Motors are teaming up to make an electric car.
Speaking at Google Inc. headquarters to announce the launch of the Green Products Innovation Institute, Schwarzenneger said California needs to focus more than ever on the green economy because “technology and innovation will save us all.”
He went on to say he was spending the afternoon in the Bay Area at Tesla’s offices, and that the company would announce today it is entering into a joint venture with Toyota Motors to develop an all-electric vehicle that would be manufactured in California.
VentureBeat breaks down the elements of the partnership including:
1. The joint development of a brand new, $30,000 electric car, that will contain Tesla’s unique powertrain design, with everything else built by Toyota.
2. The purchase of the NUMMI plant, in Fremont, where Tesla plans to manufacture both its Model S sedan due out in 2012, and this more affordable “third-generation” vehicle.
3. A $50 million investment from Toyota into Tesla when the company goes public, probably later this year.
The Silicon Valley/San Jose Business Journal reports that as recently as last night, Downey, Calif., officials were under the impression that Tesla's new factory would be built there.
Tesla formalized the news with a press release Thursday night. “The Tesla Factory effectively leverages an ideal combination of hardcore Silicon Valley engineering talent, traditional automotive engineering talent and the proven Toyota production system,” said Tesla CEO Elon Musk in the release. “The new Tesla Factory will give us plenty of room to grow.”
Tesla recently hired a Northwest regional manager from Portland and will hold a Roadster test drive event in Portland this week.
Toyota's Bill Reinert, national manager of advanced technology, will deliver the keynote address next week at the Sustainable Business Oregon awards luncheon.
Read more in the San Francisco Business Times. Earth2Tech offers analysis of the partnership. Portfolio.com has commentary on the market impact.
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