Tesla and Toyota’s Electric RAV4 Break Up; No Reason Yet Given
Though Tesla’s (NASDAQ:TSLA) Model S sedan is the part of its business that garners the brightest spotlight, the company also produces the drivetrains for a handful of other vehicles that drive under different nameplates. That that list just got a bit shorter, though, as Tesla revealed that it would no longer be supplying the powertrains for Toyota’s (NYSE:TM) electric RAV4 EV. Toyota is a 2.4 percent stakeholder in Tesla.
“Toyota is expected to end the current RAV4 EV model this year,” Tesla in a quarterly filing late last week. The supply contract has so far generated $15.1 million worth of revenue for Tesla in the quarter that ended at the end of March, but the company’s “production activities under this program are expected to end in 2014.”
Bloomberg reports that according to a July 2011 filing, Tesla stated that the terms for the deal with Toyota would generate about $100 million for the company. Toyota said in May 2012 that it would purchase enough powertrains to supply 2,600 RAV4 EVs over a three-year period.
Toyota, though, told Bloomberg that there was no such formal announcement to end the RAV4 EV program. “This was a project for a specific number of vehicles that we planned to sell for a specific number of years,” Toyota spokesman John Hanson said. “We have not made any announcement about the relationship or what we’ll do with Tesla in the future.”