Tesla-Toyota RAV4 EV Supply Deal Coming To An End

At the end of this year, Tesla’s supply deal with Toyota for its limited-availability RAV4 EV will end.

The announcement by Tesla is in keeping with a 2012 arrangement with Toyota to supply powertrain components to 2,600 RAV4 EVs.

Toyota owns a 2.4-percent share of Tesla, and the seemingly win-win- supply agreement saw Tesla generate revenues of $15.1 million.

The RAV4 EV has been well regarded due to the collaboration of Tesla with Toyota.

As the Japanese automaker intends to cease RAV4 EV production this year, it has not said what it would do for an encore other than move toward fuel cell vehicles with its first sedan in 2015.

Toyota’s top leadership has very publicly shied away from battery electric cars at this stage, while holding open the possibility for later.