Tesla ends battery deal for Toyota electric cars
Japanese automaker disputes that RAV4 EV program is ending.
Ahead of its plans to build the world’s largest battery plant, Tesla Motors Inc. says its deal to supply Toyota Motor Corp. with battery packs and motors for a rechargeable crossover vehicle will come to an end this year.
Toyota, which owns a 2.4 percent stake in Palo Alto, Calif.-based Tesla, said in May 2012 that it would buy the electric-car maker’s components for 2,600 electric RAV4 EVs over three years.
Elon Musk, Tesla’s chief executive officer, had said he ex-
pected Toyota to extend the agreement that was initially worth as much as $100 million, based on a July 2011 securities filing.
However, Tesla said in a quarterly securities filing that Toyota “is expected to end the current RAV4 EV model this year.”
While the supply deal generated $15.1 million of revenue for Tesla in the quarter that ended March 31, “our production activities under this program are expected to end in 2014,” Tesla said.
Toyota hasn’t announced plans to conclude the RAV4 EV program, said John Hanson, a company spokesman.
“This was a project for a specific number of vehicles that we planned to sell for a specific number of years,” Hanson said.
“We have not made any announcement about the relationship or what we’ll do with Tesla in the future,” the spokesman added.
The conclusion of the Toyota program comes as Tesla expands global sales of Model S sedans, priced starting at $71,000, and readies the electric Model X crossover for delivery in 2015.
It is working as well on a lower-priced rechargeable sedan due in two to three years.
The company also is ramping up supplies of components for inves- tor Daimler AG’s electric Mercedes B-Class car as it plans a battery “gigafactory” to cut lithium-ion cell costs by 30 percent.
Tesla’s planned “gigafactory” would be so large — 10 million square feet — that it could be seen from space and would double the world’s production of lithium-ion batteries.
The site requires 1,000 acres, rail access and renewable energy sources.
Sites mentioned in Central Texas — Hutto, San Marcos or San Antonio — now find themselves competing against California, Musk’s home state.
Musk belatedly added the Golden State to the original list of Arizona, Nevada, New Mexico and Texas.
Last week, Musk said Tesla would break ground at its first site next month, then follow up at a second site a month or two later.
Toyota spokesman