Toyota Says They Sold Off Tesla Stake And Now Ends Project Collaboration

Toyota Motor Corp announced on Saturday that it had sold off its remaining stake in Tesla last year, as the Japanese automaker began to launch its own electric car program.

Toyota initially invested $50 million in 2010 for a 3% stake in the upstart electric car builder that also involved Tesla’s purchase of the Toyota / General Motors NUMMI factory in Fremont. That same factory now employs over 10,000 workers and is expected to produce 500,000 vehicles as early as next year. Toyota divested some of its shares in 2014 with the remainder being sold in 2016 according to Bloomberg.

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skytop - 6/5/2017 3:12:02 PM

0 Boost

As I predicted well over 2 years ago, Tesla will very soon be facing enormous competition from the major auto manufacturers who will be marketing their own electric car. And they will not be taking billions of taxpaper dollars to fund their businesses.

Only Tesla is still operating due to the billions of U.S. taxpayer dollars that have been given to the progressive liberal Musk by the corrupt hussein obamma administration. Tesla has NOT yet made a single DIME of profit.

dpalmo - 6/5/2017 3:35:43 PM

-1 Boost

Tesla has been sustained by profits from Musk's other venture, SpaceX. Once the funds run out, Tesla will be left out in the dry!

TheSteve - 6/5/2017 4:09:58 PM

+5 Boost

Tesla also brings in money from capital markets (selling shares on the stock market). This is one of their more popular modes of getting cash and operating capital.

re "Tesla has NOT yet made a single DIME of profit" -- Did you forget that one quarter-year where they claimed to make a profit (just don't bring attention to the SEC for Tesla's questionable, non-GAAP accounting that resulted in that alleged profit declaration).

SanJoseDriver - 6/5/2017 7:25:20 PM

0 Boost

It was GAAP profitable for two quarters, but I expect it to take losses for a least a couple more years and will not disagree that they are losing money at this point.

Tesla received loans and paid them back, unlike two other US companies that cost taxpayers billions they will never get back. Tesla is also adding US manufacturing jobs, while the big 3 are cutting or outsourcing them.

I can't bash Toyota or MB, because their investments saved Tesla. They are both aggressively going to compete with the company, which is a good thing for us consumers. Toyota has publicly stated that they want their manufacturing lines to be more like Tesla, so it is not like they didn't get any value from the relationship. MB is aggressively investing in EVs, which they wouldn't have done if Tesla didn't exist. I still think Audi/VW is going to provide the strongest competition--Toyota unfortunately is epicly behind.

MDarringer - 6/5/2017 4:15:34 PM

+1 Boost

Toyota bought in just in case Tesla had anything game-changing up its sleeve. Then they saw that Tesla uses the same EV technology as everyone else and that Tesla does not do adequate testing (autopilot) before taking a technology to production. There was nothing in it for Toyota and Tesla got dumped.