Friday 21st May 2010

Tesla Gets $50m Leg Up From Toyota

Deal ensures Model S sports saloon will appear in 2012

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Toyota is investing in the Tesla Model S

Tesla has sold a $50m slice of itself to Toyota, giving it access to a mothballed factory belonging to the Japanese giant in California - and presumably all sorts of additional advantages in logistics, production and distribution.

Now run by Paypal founder Elon Musk, some commentators say Tesla appears to have struggled with supply chain and cost issues in the past, so the Toyota tie-in should give the company a big leg-up. The plan is to introduce the new Tesla Model S saloon at the Fremont, CA factory, with initial volumes of 20,000 cars a year promised from 2012.

Musk has always had a grand vision for Tesla, and reckons that as the plant expands it could employ up to 10,000 workers - but only 1,000 will be required for it to build the Tesla S initially.

It should now appear in 2012

Of considerable interest is Toyota's motivation for stepping in at short notice, in a deal further sweetened by tax sweeteners for Tesla's capital investment at the factory that was brokered through the office of California governor, Mr Arnold Schwarzenegger.

Toyota already considers itself to be a global leader in hybrid/alternative technology, and popping $50m into Tesla's back pocket could never have been part of its own strategic plans.

Which leaves us wondering if the Japanese company, still reeling from its recall nightmare in the US, would have given a pot of gold to anyone offering a loved-up photo-op with Arnie?

Arnie will be HP after Toyota deal Arnie not HP...

[sootyrumble]

I think this may be a good move by Toyota they now have access to all Teslas high power motors and low size batteries hopefully allowing them to quickly develop more sporting Hybrids. Also they have a Eco Sports car as part of the group because i bet for 50million they now control Tesla.

Still wish they had bought something a little more exciting than a company that produces a silent Lotus Elise, and an electric Panamera

[Hellbound]

Toyota needed to get in bed with an American to look a little more domestic than foreign in US buyers eyes. Perhaps the witch hunt will soon be forgotten and they can start making positive inroads into the American car buying psyche. Sort of continuing where they left off, but now with batteries and a star spangled banner.

[johnhenry]

looks like an aston front end with a lexus rear...quite nice, but not sure about the whole idea if im honest

[Mr Gear]

Hellbound said:

Toyota needed to get in bed with an American to look a little more domestic than foreign in US buyers eyes. Perhaps the witch hunt will soon be forgotten and they can start making positive inroads into the American car buying psyche. Sort of continuing where they left off, but now with batteries and a star spangled banner.

I agree. I don't think this is about buying into the technology, I doubt Toyota need anything that Tesla has: it's battery and motors are a bit crude by all accounts.

It's about money - If Toyota can get a slice of the grants-filled pie and put its mothballed factory to use, it could be very attractive purely from a financial point of view.

[sprinter1050]

Surprised that Toyota dare throw $50M cash around-I thought they were facing huge losses.

I also agree it looks like a shrunken AM V8

[LukeBird]

Hellbound said:

Toyota needed to get in bed with an American to look a little more domestic than foreign in US buyers eyes. Perhaps the witch hunt will soon be forgotten and they can start making positive inroads into the American car buying psyche. Sort of continuing where they left off, but now with batteries and a star spangled banner.

Completely agree.
It'll be interesting if this makes any difference regarding the witch hunt for Toyota...

[cs02rm0]

Looks great, but I bet it costs a fortune.

[ctallchris]

sootyrumble said:

I think this may be a good move by Toyota they now have access to all Teslas high power motors and low size batteries hopefully allowing them to quickly develop more sporting Hybrids. Also they have a Eco Sports car as part of the group because i bet for 50million they now control Tesla.

Still wish they had bought something a little more exciting than a company that produces a silent Lotus Elise, and an electric Panamera

50 million is a drop in the ocean for tesla. The major news is that they are builidng a relationship with toyota (one of the companise most skilled at mass producing cars with tesla one of the only manufacturers in the world with a decent full electric drivetrain

[timewatch]

It looks like and Aston-Mondeo!

Heading in the right direction here though.

When electric or Hydrogen cars eventually become the norm our rod tax will be £2000 per car
also road tolls will be everywhere and cars will all be tracked and pay per Kilometre, yes I did say Kilometre!

Wonk the Tory used the unit of litre for the first time to determine the duty price rise on our gallon back in the Eighties so they could get more revenue from
the motorist each time there was a budget.
So don't think things will change when this comes around.

Just because it's men't to be cleaner and more Eco-friendly doesn't mean it will be eventually cheaper to run, the Chancellor will want his pound of flesh
regardless!

TW>>>

[bertie]

Teslas motors and battery tech is actualy very advanced and very cost effective.

The car styling is not yet signed off, the pics are a demo car, final sign off is happening about now.

This is going to be a resonably priced vehicle, it will cost much less than the Roadster.

[Conor D]

johnhenry said:

looks like an aston front end with a lexus rear...quite nice, but not sure about the whole idea if im honest

I was thinking Maserati front and Jaguar XF rear..

[Cacatous]

Conor D said:

johnhenry said:

looks like an aston front end with a lexus rear...quite nice, but not sure about the whole idea if im honest

I was thinking Maserati front and Jaguar XF rear..

Spot on

[Mr Gear]

Cacatous said:

Conor D said:

johnhenry said:

looks like an aston front end with a lexus rear...quite nice, but not sure about the whole idea if im honest

I was thinking Maserati front and Jaguar XF rear..

Spot on

And what a lovely looking cut-and-shut it is!

[anonymous-user]

Lovely design. They've taken the best bits from a great cars and made them work together as one car. I tip my hat to that design team.

ETA: Not design team, just one man! Amazing. He also designs Mazdas which you can see in the front end.

Edited by MSTRBKR on Friday 21st May 11:54

[sootyrumble]

ctallchris said:

sootyrumble said:

I think this may be a good move by Toyota they now have access to all Teslas high power motors and low size batteries hopefully allowing them to quickly develop more sporting Hybrids. Also they have a Eco Sports car as part of the group because i bet for 50million they now control Tesla.

Still wish they had bought something a little more exciting than a company that produces a silent Lotus Elise, and an electric Panamera

50 million is a drop in the ocean for tesla. The major news is that they are builidng a relationship with toyota (one of the companise most skilled at mass producing cars with tesla one of the only manufacturers in the world with a decent full electric drivetrain

http://techcrunch.com/2010/01/29/teslas-100m-ipo-losses-expected-until-at-least-2012-musk-taking-1-a-year/ This is an interesting article as it appears Toyota are also now in with Daimler as partners in Tesla, i really think it is the technology Toyota want as they look to hold the market in Electric and Hybrid which long term will force the american market open as no matter how much they love their gas guzzlers over there its a finite resource, and is becoming more expensive even to them.

[bertie]

Mr Gear said:

Cacatous said:

Conor D said:

johnhenry said:

looks like an aston front end with a lexus rear...quite nice, but not sure about the whole idea if im honest

I was thinking Maserati front and Jaguar XF rear..

Spot on

And what a lovely looking cut-and-shut it is!

The pics are of an early demo car, the styling is not signed off yet.

[Frimley111R]

Without a huge leap in battery technology I can't possibly see how this larger car can work. The roadster only has a 'passable' range and that is light and small.

[Frimley111R]

sprinter1050 said:

Surprised that Toyota dare throw $50M cash around-I thought they were facing huge losses.

$50 million is a 'drop in the ocean' for Toyota. Last quarter's profits were c$800 million

[Mr Gear]

Frimley111R said:

sprinter1050 said:

Surprised that Toyota dare throw $50M cash around-I thought they were facing huge losses.

$50 million is a 'drop in the ocean' for Toyota. Last quarter's profits were c$800 million

Profit. What the hell is their turnover then? I'd say this IS a drop in the ocean.

And even if this investment doesn't earn them a penny, it could cuts costs on that mothballed factory and entitle them to development grants.

[vintageracer01]

Cacatous said:

Conor D said:

johnhenry said:

looks like an aston front end with a lexus rear...quite nice, but not sure about the whole idea if im honest

I was thinking Maserati front and Jaguar XF rear..

Spot on

And...? It looks nice. As long Toyota does NOT get involved in the design work it may turn out as a very nice car.