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 (44 Responses)
  1. slozomby

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

    which is funny since tesla motors was founded in san jose and has always been solely operating in the state of california.

    May 20, 2010 at 8:41 pm | Report abuse |
    • Dave

      I think he's referring to the location of the factory. Telsa was originally looking at New Mexico for the Model S factory a few years back.

      May 20, 2010 at 10:51 pm | Report abuse |
  2. Grumpy

    Arnold needs to be quiet now. He's messed us up too much already. Thankfully he'll be back to acting soon.

    May 20, 2010 at 8:47 pm | Report abuse |
    • russell

      how has Arnold messed up the state? I thought it was the environmentalists and the unwillingness of the state legislators to come together and agree on something–anything–to move the state forward in the right direction.

      May 20, 2010 at 9:15 pm | Report abuse |
    • brightrworld

      I don't think Arnold has messed up anything. Our lame legislature has refused to do anything to help the tax paying citizens of California. It is create a new government in California.

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

    I remember growing up in the 70's and 80's in a time without spell check and seeing a typo in a news article was a true rarity. Now (with spell check), we're treated to such paragraphs as below. Two typos in such a short paragraph...on CNN.com.

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

    May 20, 2010 at 8:51 pm | Report abuse |
    • Truth

      Probably because this is a blog post, not a news article, you dolt.

      May 20, 2010 at 9:00 pm | Report abuse |
    • Joe

      I couldn't agree more. This is their business and they can't even get the basics right.

      May 20, 2010 at 9:03 pm | Report abuse |
    • Parten

      Didn't it occur to you that perhaps the typo is due to Schwarzenegger's poor English? It's inside the quotation which suggest it was a direct quote.

      May 20, 2010 at 9:18 pm | Report abuse |
    • Jose

      LOL, it's NOT a too-mah!

      May 20, 2010 at 9:37 pm | Report abuse |
    • Joe

      I have to agree, seeing a typo on cnn.com is sad. I wish I could send an e-mail to Emanuella Grinberg telling them to fix it.

      May 20, 2010 at 9:59 pm | Report abuse |
    • e-train

      get in tha choppa!

      May 20, 2010 at 10:04 pm | Report abuse |
  4. DaveyJones

    I hope the electrical connections are high enough to survive 1 foot of water. Current vehicles stall out too easily.

    May 20, 2010 at 8:52 pm | Report abuse |
  5. Lynn Thompson

    The very name, Tesla – makes me aware that this could be a great idea. I hope this happens.

    May 20, 2010 at 8:52 pm | Report abuse |
  6. georgebs

    Not sure why anyone would be happy to see Arnold acting again.....

    May 20, 2010 at 8:54 pm | Report abuse |
  7. JW

    True Lies II – that's why.

    May 20, 2010 at 9:03 pm | Report abuse |
  8. Fed Up

    How big were the tax incentives ????

    May 20, 2010 at 9:05 pm | Report abuse |
  9. I Love V8s!!!

    Well, the Tesla Roadster is a nice niche vehicle, but have you seen the Tesla Sedan? (Do yourself a favor and look it up on Tesla's website if you are not familiar with it.) Wow, I'd give up my thirsty modern muscle car in a heartbeat for one of those 4-door beauties!

    Toyota, please take note: If you want to sell electric, Tesla proves they can look gorgeous instead of being shaped like a suppository. Please don't kill their company with your boring, corporate-mandated designs.

    May 20, 2010 at 9:08 pm | Report abuse |
    • Tom

      When are these companies are coming up with a decent car for the limo businesses? the Lincoln towncar is just an old style. come on we need something futuristic but yet classy.
      http://www.chicagolimodirectory.com

      May 22, 2010 at 7:34 pm | Report abuse |
  10. NitroWolf

    The only problem with Tesla Motors is the price range of their fully electric vehicles. Hopefully, this company partnership will bring forth a line of affordable effective vehicles.

    May 20, 2010 at 9:11 pm | Report abuse |
  11. Skeptical

    I wonder what the backroom dealings with the Obama administration on "loans" for electric vehicles were. Locating in CA I would guess there might be even more hidden gifts from the Obama administration. Time will tell I guess.

    May 20, 2010 at 9:19 pm | Report abuse |
    • anon

      Stop being ridiculous.

      May 20, 2010 at 9:37 pm | Report abuse |
  12. Eduardo Santana

    Now you have the chance to start over! Here in Brazil still move by towards slow when it comes to electric car. Seize the chance and remember the lesson of the EV-1. Together we can change the world! Good Luck!

    May 20, 2010 at 9:21 pm | Report abuse |
  13. reality

    If you start with an electric car with a battery that has ~40 mile range and add a small engine / alternator that can supply ~75% of the current to keep the car going, you'd be able to go ~130 miles before needing to let the car sit and recharge.

    Since the engine would run at a constant RPM and torque it could be made very efficient. By the time you've driven 130 miles, it's about time to take break anyway. The engine could recharge the battery while you're at a rest stop or eating etc.

    Once there are enough such cars on the road, you'll see plug in recharge stations as well.

    When you get in the car, you tell the on board computer the approximate miles you need to drive before you can recharge and it can control when to recharge the batteries and when to wait.

    Throw in some improved battery technology and we could easily cut gas consumption by 50% or more. And, if I dare go one step further, package the car with solar panels equal to the power needed to recharge it.

    May 20, 2010 at 9:29 pm | Report abuse |
    • Chris

      Cool info...I'm ready for electric power... thanks for posting 🙂

      July 2, 2010 at 3:55 pm | Report abuse |
  14. tekbit

    What Use are Electric Cars without the Infrastructure to Support them in place and ready to Service? Talk about about putting the Cart before the Horse.

    May 20, 2010 at 9:32 pm | Report abuse |
  15. John

    To so-called "Truth": You're calling Madlogic a dolt because he thinks it's acceptable to not check your spelling just because it's a blog entry? YOU ARE CLEARLY THE DOLT.

    May 20, 2010 at 9:35 pm | Report abuse |
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