Toyota was testing and selling an electric version of the original RAV4 from 1997-2003.
Tesla Motors, Inc. (Tesla) and Toyota Motor Corporation (TMC) today announced that the two companies will start the development of an electric version of the RAV4, which will be available in the U.S. by 2012.
The electric cute-ute will be made from the existing RAV4 with a Tesla electric powertrain substituted for the gasoline one.
Tesla claims it will deliver prototypes to Toyota for evaluation within this year. The first prototype has already been built and is now undergoing testing.
In May, Elon Musk of Tesla and Akio Toyoda of TMC announced their intent to cooperate on the development of electric vehicles, parts, and production system and engineering support.
Upstart Tesla wants to learn from Toyota’s engineering, manufacturing, and production expertise, while automotive superpower Toyota says it will learn from Tesla’s EV technology, quick decision-making and flexibility.
Some industry insiders think that the joint program is nothing more than an image cleaning effort by Toyota after it shut its only unionized plant in the U.S. this past spring – New United Motors Manufacturing in Fremont, California. (See UAW Taking Aim at Toyota )
Last month Tesla was taken public in what were lucrative deals for founder Musk and the taxpayer-bailed-out Wall Street Underwriters.
Tesla’s move was the first Initial Purchase Offering by a U.S. automaker in half a century, since Ford Motor in 1956. Analysts say a number of additional electric vehicle manufacturers could enter the market, if Tesla’s bid ultimately proves successful. EVs are and will be heavily subsidized by taxpayers under current legislation.
Where Tesla’s stock will be trading a month from now as the hype subsides is questionable. Right now it’s at about $20 a share, after trading as high as $30.42 as small retail investors got in at the top of the market. (Tesla Ups Price, Volume of Initial Public Offering) Potential investors should consider whether Tesla can actually take advantage of a potential battery car boom. Tesla is hemorrhaging cash, having lost money in every quarter since its founding in 2003 – a total of $230.5 million so far.
Moreover, with Model S development efforts underway, the loss for the first quarter of 2010 jumped to $29.5 million, nearly double the year-earlier figure. The company projects that it will lose money for years.
However, Tesla does have other potential sources of revenue while it waits for the Model S to appear, including the Toyota deal. It is also providing the battery technology for Daimler AG’s new Smart electric, a battery version of the 2-seat fortwo microcar. In addition, Tesla is working with Daimler on other battery-based vehicles.
Based in Silicon Valley, Tesla was founded by Elon Musk, a South African émigré who made his initial fortune as one of the founders of the online service PayPal. He has since moved into a variety of other high-tech ventures, including SpaceX, which hopes to become one of the leading providers of commercial space launches. (See also Tesla IPO Set for Tuesday Launch)