Toyota Purchasing Tesla Stake

Toyota MotorToyota Motor Corp., which is the world’s leading automaker, is purchasing a $50 million stake in the Californian electric-car maker Tesla Motors Inc. as auto manufacturers contests to present low-polluting models of cars in the U. S.

Tesla will as well purchase a closed Toyota enterprise industrial unit in California, so as to build its Model S and other vehicles, Tesla Chief Executive Officer, Elon Musk informed yesterday.

The corporations stated that they’ll assist in developing electric cars, parts, production systems and engineering support.

The contract may prove to be helpful to leading car maker to be in competition with Nissan Motor Co. and General Motors Co. in vending out cars in the U. S.

Jeremy Anwyl, Chief Executive Officer at auto industry researcher Edmunds. com in Santa Monica, California said that this appears to be a good deal for both the parties, particularly Toyota.

The volume of Toyota’s stake in Tesla hasn’t been set in advance of a share sale by Tesla, Musk stated in a meeting.

Daimler AG in the month of May 2009 spent almost $50 million in Tesla, which is providing battery packs to the Stuttgart, Germany-based Company, for a test fleet of electric Smart minicars at the unit.