May 20th, 2010
10:20 PM ET

Toyota and Tesla Motors team up to make electric cars

Tesla Motors is partnering with Toyota to make electric cars at a defunct auto plant in California in a deal that is expected to create thousands of jobs, the two companies announced Thursday.

Part of the deal will involve Toyota purchasing $50 million of Tesla’s common stock, the companies said in a joint statement.

“Toyota is a company founded on innovation, quality, and commitment to sustainable mobility. It is an honor and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla,” said Tesla CEO and co-founder Elon Musk.

The companies intend to collaborate on the development of electric vehicles, parts, and production system and engineering support, Toyota President Akio Toyoda in a joint press conference Thursday.

“Through this partnership, by working together with a venture business such as Tesla, Toyota would like to learn from the challenging spirit, quick decision-making, and flexibility that Tesla has. 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.”

The venture is expected to create thousands of jobs at the recently shuttered New United Motor Manufacturing plant, or Nummi, in Fremont.

Gov. Arnold Schwarzenegger also spoke at Thursday's press conference and thanked the companies for bringing their business to the state.

"This all hapened because we created tax incentives for this company and this partnertship," Schwarzenegger said.

Read the full story on CNNMoney.com

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Filed under: Business • Economy
soundoff (43 Responses)
  1. Amber

    The Tesla is truely a remarkable car. Aptly named after the greatest electrical inventor of all time.

    May 20, 2010 at 9:53 pm | Report abuse | Reply
    • Jazzreve

      Finally someone mentions him!

      May 21, 2010 at 11:08 am | Report abuse |
  2. reality

    @tekbit Not so much the cart before the horse, more a chicken and the egg problem. You cannot build the car without the infrastructure and no one will build the infrastructure until there are enough cars.

    The solution is the plug and go hybrid, as I described. Most people drive <40 miles a day and they can recharge when they get home. For longer drives, the small gasoline or CNG engine will make it possible. Thus there will be a growing demand for plug in recharging stations, without depending on them. When there are enough people who want to recharge at roadside restaurants, motels, rest areas, stores etc, the stations will be built.

    When you plug your car into a socket, the car identifies itself and your account is charged for the power you take. Remote charging centers on highways can utilize wind, solar, micro hydro electric and other sources. Less remote could use standard grid power.

    Once the electric recharge infrastructure exists and longer range power storage is developed, the gas / CNG engine can be dropped and an all electric car will be a possibility.

    The key is to create a demand for the infrastructure without it being an absolute necessity.

    May 20, 2010 at 9:57 pm | Report abuse | Reply
  3. Kris

    What the heck is wrong with tesla? we wouldn't want to drive an electric car that has acceleration issues or the steering rod that snaps or car that flips around when you take a steep turn. I thought this west coast firm was SMART.

    Evidently, they are because tesla has taken tax payers money as federal aid to team up with "TOYOTA."

    GOD BLESS AMERICA.

    May 20, 2010 at 10:07 pm | Report abuse | Reply
  4. Moe

    What this article fails to mention is that Tesla was preparing to sign a lease with Downey, CA literally tonight to use facilities on a former NASA site for the production of the Model S. Imagine the surprise we're all feeling when 2 hours before the scheduled meeting with the city that suddenly Toyota has walked in with a big check. Oh well, best of luck to them and their partnership.

    May 20, 2010 at 10:16 pm | Report abuse | Reply
  5. Dustndawind

    What a brilliant move by Toyota. Helping a struggling U.S. automaker. Now they may help produce not only a car that accelerates by itself; it could also electrocute you first before impact. I like it.

    May 20, 2010 at 10:24 pm | Report abuse | Reply
  6. Amber

    Hey Kansas lover . . . funny :)

    May 20, 2010 at 10:58 pm | Report abuse | Reply
  7. BreakingNewsBlog.us

    .
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    the Li-air batteries (now developed also by IBM) are the key technology that will (finally) transform the dream of low cost and long range electric cars to reality
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    May 21, 2010 at 12:45 am | Report abuse | Reply
  8. Angel

    Remember, Tesla was the original inventor of the radio but Marconi got the credit. I just hope that Toyota does not take the credit for making a great automobile away from Tesla.

    Arnold, I am sure, was quoted correctly in the article...his public speaking skills are still pretty poor. I hoped that marrying a Kennedy would help in that department but apparently not.

    May 21, 2010 at 4:04 am | Report abuse | Reply
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    i remember when i was still in high school, i always fear public speaking engagments.`,;

    May 23, 2010 at 1:21 pm | Report abuse | Reply
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    i think everyone would have an anxiety attack during public speaking. publick speaking requires a good deal of self-confidence*:"

    October 24, 2010 at 10:08 pm | Report abuse | Reply
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    i think that everyone have a fear of public speaking in one way or another ~"'

    December 21, 2010 at 1:17 pm | Report abuse | Reply
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    The ebook De leukste columns is free to download at smashword.com

    February 26, 2012 at 10:16 am | Report abuse | Reply
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