Toyota Motor Corp., the world’s largest automaker, is acquiring a $50 million stake in Tesla Motors Inc. and will develop electric vehicles with the company.
Tesla will buy a closed Toyota joint-venture factory in California to build its Model S and other cars, Governor Arnold Schwarzenegger said in a statement today. The companies will cooperate on developing electric vehicles, parts and production systems and engineering support.
Toyota’s investment comes as Palo Alto, California-based Tesla, which sells the $109,000 Roadster electric sports car, prepares to raise about $100 million in an initial public offering of shares. Tesla, which hasn’t posted a profit in six years, said it may use the proceeds to pay for factories and equipment, which it has estimated will cost as much as $125 million this year, and for acquisitions. The company said it doesn’t have agreements or commitments for specific purchases.
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