Pure play Electric Vehicle producer Tesla which has got a lot of press for its “Roadster” Electric Vehicle has found another partner in Toyota.Tesla has earlier sold a 10% stake to German auto giant Daimler.Besides making vehicles,Tesla also sells power train technology to other big auto producers.Toyota which is at the vanguard of “clean transportation” through its super successful hybrid Prius will invest $50 million in a private placement after Tesla’ IPO closes.Tesla had earlier announced its plan to make an IPO this year.After A123 systems this green IPO should generate the most media hype and excitement but I don’t think it will be very profitable for investors.The Toyota deal also includes Tesla taking over the NUMMI plant in California which has been closed down by the JV partners GM and Toyota earlier.This plant will now be used for making its new “Model S” EV sedans.
Joint Ventures in Electric Vehicles and Battery Startups
Like “Solar thermal” startups, Electric Vehicle startups like Tesla,Fisker,Coda require large amounts of capital to go into production.The continuous need for large capital infusions makes partnerships with established companies with large balance sheets essential . I think some of these ventures would be eventually be absorbed by the Honda’s and Toyotas of the world. Even with large govt funded loan grants and subsidies , the success of these startups is a big question mark . This is due to high technology,execution,capital and regulatory risks.
- Battery maker A123 Systems had tied up Fisker Automotive to supply batteries.It also put in $23 million to seal the supply deal with Fisker
- Norwegian EV producer Think has partnered with Ener1 to source batteries.This deal too involved a cash infusion from the battery suppplier to the EV producer.Think has also partnered with Japanese companies to license its power train technology
Toyota, a company that favours hybrid technology such as that used in its Prius over electric vehicles, is to buy a £35m ($50m) stake in California electric-sports car maker Tesla. The decision comes months before Nissan is due to start selling the 100 per cent electric Leaf car in America.
As car makers in America are jostling to produce the cleanest cars as increasingly tough regulations push them to offer low-emission vehicles, Toyota and Tesla will jointly develop electric cars, parts and engineering support.
The heads of Tesla Motors Inc. and Toyota Motors Corp. say both automakers are partnering to build electric cars at a recently shuttered auto plant in the San Francisco Bay area.Toyota president Akio Toyoda said Thursday that his company is investing $50 million in the joint venture, which will include the development of an electric vehicle together.Tesla CEO Elon Musk says the electric carmaker will build its new Model S electric sedan at the New United Motor Manufacturing Inc., known as Nummi, in Fremont.