Bloomberg News reports that Tesla (TSLA) has announced its deal to supply Japanese automotive manufacturer Toyota Motors (TM) with battery packs used in its electric RAV4 EV will conclude this year.
The publication found word of the end of the agreement in a corporate quarterly filing from the American electric automaker last week.
Toyota, which owns 2.4 percent stake in the Palo Alto, Calif.-based company, said in May 2012 that it would buy Tesla’s components for 2,600 electric RAV4 EVs over the course of three years. Elon Musk, Tesla’s CEO, had said he expected the Japanese automaker to extend the deal that was initially worth as much as $100 million, based on a July 2011 filing.
“Toyota is expected to end the current RAV4 EV model this year,” Bloomberg quotes Tesla as saying in the filing. While the supply agreement generated $15.1 million of revenue for Tesla in the quarter that ended March 31, “our production activities under this program are expected to end in 2014,” Tesla said.
Toyota is expected to end the current RAV4 EV model this year, so Tesla expects the production activities under the program to end this year.
Conclusion of the Toyota program comes as Tesla expands global sales of its Model S and is getting ready to produce its new Model X SUV, touted by the company as faster than Porsche AG’s 911 sports car. Tesla is targeting production of its new model in the spring of 2015.
Toyota has not revealed what its plans are for the future of the RAV4 EV model.
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
