It's Official: Tesla to Develop Electric Version of Toyota RAV4

PALO ALTO, Calif. October 13, 2010; Today Tesla Motors filed an 8-K with the Unites States Securities and Exchange commission to disclose its agreement with Toyota Motor Corporation to develop an electric powertrain system for the electric version of the RAV4.

Text of the form is below:

On October 6, 2010, Tesla Motors, Inc. entered into a Phase 1 Contract Services Agreement (the Agreement)with Toyota Motor Corporation for the development of a validated powertrain system, including a battery, power electronics module, motor, gearbox and associated software, which will be integrated into an electric vehicle version of the RAV4. Pursuant to the Agreement, based on preliminary specifications, TMC will pay Tesla approximately $60 million for the development services to be provided by Tesla. The parties will mutually agree to the final specifications, deliverables and payment amounts and schedule within 60 days of the execution of the Agreement. This amount will be paid in various installments during the term of the Agreement.

Tesla and TMC previously entered into an agreement to initiate the development of an electric powertrain system for the RAV4 in July 2010 and TMC purchased $50.0 million of Tesla's common stock in a private placement transaction that closed immediately subsequent to the closing of Tesla's initial public offering in July 2010.