Tesla Inks $100 Million Deal with Toyota for RAV4 EV
Big Deal for Electric WheelsTesla Motors is now a public company (which means it's traded on a stock exchange), so when something 'material' happens, something important enough to effect the fortunes of the company, the shareholders must be informed in a publicly-available filing with the SEC. well, if you look at this chart, you'll see that something pretty important seems to have happened in the middle of yesterday...
Here's the whole SEC filing:
On July 15, 2011, Tesla Motors, Inc. ("Tesla") entered into a Supply and Services Agreement (the "Agreement") with Toyota Motor Corporation ("TMC") for the supply of a validated electric powertrain system, including a battery, charging system, inverter, motor, gearbox and associated software (the "Tesla Battery and Powertrain"), which will be integrated into an electric vehicle version of the Toyota RAV4. Additionally, Tesla will provide TMC with certain services related to the supply of the Tesla Battery and Powertrain. Pursuant to the Agreement, TMC will pay Tesla approximately $100 million. Production of the RAV4 EV is expected to begin in 2012 and to continue through 2014.
Tesla and TMC initiated the development of an electric powertrain system for the RAV4 in July 2010 and further entered into a Services Agreement for the development of the Tesla Battery and Powertrain for the RAV4 EV in October 2010.
TMC purchased $50.0 million of Tesla's common stock in a private placement transaction that closed immediately subsequent to the closing of Tesla's initial public offering in July 2010.
So a $100m powertrain contract for vehicles that are going on the road next year. This should help Tesla stay afloat long enough for its Model S electric sedan to come to market and start providing some cash flow.
Photo: Tesla Motors