Tesla Motors Inc (TSLA) confirms Toyota RAV4 EV deal is winding down
Tesla Motors Inc (NASDAQ:TSLA) confirmed in its recent Q1 filing that it will fulfill its deal to supply Toyota RAV4 EV components sometime in 2014. In 2012, Toyota and Tesla signed a deal where Tesla would supply components for 2,600 electric RAV4 EVs. Tesla Motors CEO Elon Musk expected Toyota to expand on that initial agreement, but Toyota is moving towards fuel-cell. This means that the end of the RAV4 EV may be coming soon.
“Toyota is expected to end the current RAV4 EV model this year… our production activities under this program are expected to end in 2014,” said Tesla Motors in a Q1 filing. As of April 30, 2014, only 1,006 Toyota RAV4 EVs remained to be sold out of the initial 2,600 unit deal for the U.S.
“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,” added Toyota spokesman John Hanson.
The RAV4 EV is only sold in California and is strictly a compliance EV. Toyota will be moving fully into launching its hydrogen fuel cell sedan next year and will be a California-only compliance vehicle.