Tesla, Toyota to End Battery Deal Early

Deal to end this year

   

Tesla, Toyota to End Battery Deal Early

Tesla (TSLA) has announced that a deal with Toyota (TM) to provide battery packs and motors for a rechargeable crossover will end early.Tesla185 Tesla, Toyota to End Battery Deal Early

The deal will conclude this year.

“Toyota is expected to end the current RAV4 EV model this year,” Tesla stated in a quarterly filing.

The supply deal provided $15.1 million in revenue for Tesla in the quarter that ended March 31.

Via Bloomberg:

Conclusion of the Toyota program comes as Tesla expands global sales of Model S sedans, priced starting at $71,000, and readies the electric Model X crossover for delivery in 2015 as well as a lower-priced rechargeable sedan due in two to three years. The company also is ramping up supplies of components for investor Daimler AG’s electric Mercedes B-Class car as it plans a battery “gigafactory” to cut lithium-ion cell costs by 30 percent.

Toyota, for its part, has not yet announced that the deal has reached its conclusion.

“This was a project for a specific number of vehicles that we planned to sell for a specific number of years,” a company spokesperson told Bloomberg. “We have not made any announcement about the relationship or what we’ll do with Tesla in the future.”

Toyota has sold 1,594 electric RAV4s from 2012 through April, company records show.

TSLA stock is up 21% year to date. TM stock is down 10% year to date.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/tesla-toyota-end-battery-deal/.

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