02/Sep/2014 - Last News Update: 08:57

Toyota investing $50m in electric car firm Tesla Motors

Category: Business

Published: 21st May 2010 15:46:28

Toyota is to invest $50m (£35m) in US electric car company Tesla Motors, as the two firms announced a joint partnership to build electric vehicles.

The deal will give the Japanese giant a stake of about 2.5% in Tesla, which will build its new saloon model at a Toyota factory in San Francisco.

Analysts said Tesla, which was only formed in 2003, will benefit from Toyota's mass production skills.

In turn, Toyota will be able to access Tesla's electric battery expertise.

The deal could also boost Toyota's reputation in the US, which has been badly hit by a number of mass recalls over problems with faulty accelerator pedals and breaking systems.

'Powerful stimulus'

Tesla chief executive Elon Musk described the announcement as a "gesture of support" from the Japanese company.

Toyota chief executive Akio Toyoda said: "Working with Tesla will provide us with a powerful stimulus."

While Toyota is the world's largest carmaker, Tesla has only 500 employees and makes just 15 cars per week.

However, Tesla has ambitious plans to expand the company, hoping that electric cars will eventually move into the mainstream.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2010. Toyota investing $50m in electric car firm Tesla Motors [Online] (Updated 21st May 2010)
Available at: http://www.ukwirednews.com/news/61484/Toyota-investing-50m-in-electric-car-firm-Tesla-Motors [Accessed 2nd Sep 2014]

News In Other Categories

  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Police reprimand group who filmed pensioner 'in agony' after fatal crash

    People who filmed an elderly woman as she "lay in agony" after being hit by a van have been reprimanded by police.
  • Brain 'can be trained to prefer healthy food'

    The brain can be trained to prefer healthy food over unhealthy high-calorie foods, using a diet which does not leave people hungry, suggests a study from the US.
  • PPI complaints remain high despite recent dip

    Complaints about payment protection insurance (PPI) have fallen after last year's record, but remain at historically high levels, according to the Financial Ombudsman Service (FOS).
  • Betsi Cadwaladr C. diff rate improves but is still high

    The superbug Clostridium difficile (C. diff) infection rate at Wales' biggest health board is still above average but has improved, new figures show.
  • Electromagnetic Field: Can geeks get kids into science?

    The government is desperate to get more young people interested in scientific subjects. Could a self-proclaimed "geek festival" held last weekend in Milton Keynes hold the answer?