Tesla and Toyota announce a partnership to develop electric vehicles

Tesla Motors and Toyota Motor Corporation announced yesterday that the two companies will be collaborating on electric vehicle development and production. Part of the deal is that Toyota has agreed to purchase $50 million of Tesla’s common stock.

Another big news is that Tesla will take over the recently closed NUMMI factory in Fremont, CA to produce the more affordable all-electric Model S sedan.

The Model S will be priced from $49,000 and has a 300 mile range from a 3-5 hour charge. Production is planned to start in 2012 and according to CEO Elon Musk, Tesla will reveal more advanced prototypes later this year.

The NUMMI factory was used by Toyota to produce the Corolla and Tacoma vehicles. It is one of the largest, most advanced automotive production plants in the world. It is capable of producing half a million vehicles per year, so we expect Tesla to speed up the production once the Model S enters production.

Currently Tesla Motors is the only automaker in the U.S. that builds and sells highway capable EVs in serial production. More than 1000 Roadsters have been delivered to customers around the world.

Toyota currently plans to introduce EVs into the market by 2012.