Tesla to Stop Supplying Batteries for Toyota RAV4 EV

Tesla Motors announced that the $100 million deal to supply Toyota with battery packs and motors for the RAV4 crossover will end this year. In May 2012, Toyota said it would buy Tesla’s components for 2,600 RAV EVs over three years.

Even though Tesla CEO Elon Musk had said he expected Toyota to extend the agreement, it appears that Toyota will end it, although there isn’t any official confirmation from the Japanese automaker.

Toyota is expected to end the current RAV4 EV (pictured) model this year. Our production activities under this program are expected to end in 2014,” Tesla said in a quarterly filing. The supply deal generated $15.1 million of revenue for Tesla in the quarter that ended March 31.

“This was a project for a specific number of vehicles that we planned to sell for a specific number of years. We have not made any announcement about the relationship or what we’ll do with Tesla in the future,” Toyota spokesman John Hanson was quoted as saying by Bloomberg.

Tesla will not be left with overcapacity problems though, as the company expands global sales of Model S sedans and prepares for the launch of the Model X electric crossover next year, as well as a mass-market sedan scheduled to launch in two or three years. Tesla is also increasing production of components for Daimler AG’s B-Class Electric Drive as it prepares to start construction of the Gigafactory battery plant.

Toyota sells the RAV4 EV mainly in California and delivered 1,594 units since 2012 through April this year. Next year, Toyota will begin California sales of a hydrogen fuel cell sedan.

By Dan Mihalascu

PHOTO GALLERY

Toyota-RAV4-EV-1Toyota-RAV4-EV-2Toyota-RAV4-EV-3Toyota-RAV4-EV-4Toyota-RAV4-EV-5

2019 Mercedes-Benz CLA: Mini CLS Or Sleeker Alternative To The A-Class?

The new CLA is a good daily driver and a quality item, so if you don’t mind the cramped back seat, go for it.

It’ll Cost You $26k To Make Your Vantage Look Like This, Get An Extra 90 Horses

While the price does seem steep, bear in mind that this is a $150k Aston, and the list consists of quite a few upgrades.

Suzuki Jimny Shows Its Off-Roading Prowess Against A Triumph Scrambler

With a mere 101 HP, power is not the Jimny’s strong suit. It’s off-road capabilities, though, are, but do they suffice against the Triumph?.

CARB Filing Reveals Rolls-Royce Cullinan Will Get Black Badge Variant

Judging by other Rolls models that have received the same treatment, we know what to expect; the only unknown is whether it’ll get a power bump or not.

Alpina Has No Interest Tuning BMW’s Front-Wheel Drive Models

Alpina says it would be hard to make money from pumped-up versions of Munich’s latest FWD crop of cars.

This Ferrari 308 GTB Is An Enthusiast’s Dream Come True

It might not be the best, most reliable or fastest Ferrari, but for one person who was in love with it for a long time, it’s bliss.

Next-Generation Fiat Panda To Gain All-Electric Variant In 2023

The Panda EV will closely resemble the Centoventi concept and will adopt its swappable and upgradeable battery pack.

Mercedes-AMG G63 Proclaimed The Most Desirable Big SUV In The World

It’s still a great off-roader, has a modern, luxurious cabin, lots of power and can even tackle a track, so what’s not to love?.

If Toyota Were To Revive The MR2, It’d Rather Do It With Porsche

How does a mid-engine platform for a new MR2 and next-gen Boxster sound?.

Electrify America And EVgo Join Forces To Simplify U.S. Charging Network

EV owners will be able to use one account to use both companies’ charging stations throughout the country.