Tomahawk, WI 08/11/2014 (Basicsmedia) – Toyota Motor Corp (ADR)(NYSE:TM) and Tesla Motors Inc. (NASDAQ:TSLA) struck a partnership agreement four years ago after a meeting between Elon Musk Tesla’s CEO and Akio Toyoda, President of Toyota. The partnership would later see Toyota agree to buy $50 million stake in Tesla as well as selling its shuttered auto factory for $42 million to Tesla. The two companies had also agreed to develop a new-electric version of Toyota’s Rav4 sports utility vehicle according to Bloomberg’s Craig Trudell. The partnership looks to have reached its climax as production of the Rav4 electric vehicle is set to cease by the end of the year; this is at the back of less than 2,000 models of the car being sold.
Tesla and Toyota’s relationship has fizzled out at the back of the souring of the relationship between Elon Musk and Akio Toyoda. Toyota Motor Corp (ADR)(NYSE:TM) has already confirmed that it will let its battery supply deal with Tesla expire and shift its focus into building cars running on Hydrogen fuel cells.
“This all started when Akio Toyoda asked to meet, Elon Musk, as Toyota was looking for a buyer or someone to step in and fill the plant that Toyoda was closing down that it had run with General Motors for a matter of decades.he asked to meet with Elon Musk, they met at Elon Musk house. They took a test drive in a road star. The sports car that preceded the Model-S. [..] Decided in addition to selling this plant to Tesla, Toyota Motor Corp (ADR)(NYSE:TM) was going to make a small investment in Tesla Motors Inc. (NASDAQ:TSLA) and was going to put up a deal where Tesla would provide the battery and some of the power train for an electric vehicle, and that turned out to be Toyota Rav4 EV,” said Trudell.
At the time of the signing of the partnership, Elon Musk had been optimistic that the partnership between the two companies would be expanded, to build a total of 2600 EV vehicles. Lack of a sense of direction on the type of car that the two companies were to build could have been the genesis of the partnership breakdown between the two companies according to Trudell. More significantly the partnership could also have fizzle out as a result of disagreements between engineers across the divide.