AUTO INDUSTRY NEWS

Toyota officially ends partnership with Tesla

Toyota officially ends partnership with Tesla image

Anton Andres / Toyota,Tesla | June 05, 2017 14:34

Toyota sells remaining stocks to end partnership

Back in 2010, Toyota purchased $50 million worth of stocks in Tesla for the development of the Japanese automaker's electric vehicles (EV). The partnership came into fruition in 2012 when the two automakers jointly developed and produced the RAV4 EV. Seven years later, the Toyota-Tesla deal has come to an end.

The news was confirmed by Toyota spokesman Ryo Sakai, via Reuters. “Our development partnership with Tesla ended a while ago, and since there has not been any new developments on that front, we decided it was time to sell the remaining stake,” said Sakai. Sakai alluded to the RAV4 EV which was last sold in limited numbers back in 2014. Since then, Toyota has yet to launch an all-electric vehicle.

For the past couple of years, the Japanese automaker was slowly selling off their stocks in Tesla. In October 2014, Toyota sold $700 million of their shares and, prior to this final sale, sold 2.3 million shares worth approximately $480 million. Toyota has since gained well over $1 billion from their initial $50 million investment.

Late last year, Toyota has been moving forward with their own EV programs and recently opened a new division to work on the said vehicles. At the moment, Toyota has a wide range of hybrid and plug-in hybrid vehicles, as well as one hydrogen-powered car in the form of the Mirai. The company plans to release their first in-house electric vehicle by the year 2020, six years after the demise of the RAV4 EV. One of Toyota's goals is to be emissions-free by 2050.