Tesla deal with Toyota is ‘not formal,’ $50m investment dependent on IPO

Tesla Motors seemed to have scored quite the coup earlier this month when it landed a deal with Toyota, but it now looks like things might be a tad more complicated than first suggested. According to Tesla, there is no formal deal with Toyota on electric car development, only an “intention to cooperate,” and Toyota’s proposed $50 million investment in the company isn’t a done deal either. It’s apparently dependent on Tesla’s IPO happening before December 31st of this year — if that falls apart or gets pushed back, the deal is off. What is officially happening, however, is Tesla’s $42 million purchase of a closed Toyota plant in San Francisco that will be used to produce the Model S sedan — which itself is apparently still set to go into production in 2012, and run about $49,900.

Tesla deal with Toyota is ‘not formal,’ $50m investment dependent on IPO originally appeared on Engadget on Sat, 29 May 2010 04:27:00 EDT. Please see our terms for use of feeds.

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