June 2, 2010 at 14:17Tesla and Toyota deal details announced
Two weeks ago, we reported on a joint venture Tesla and Toyota, in which Tesla will produce electric vehicles in the California plant NUMMI, the former Toyota ownership. Yesterday, details of this transaction became known .
So, the purchase of a NUMMI plant will cost Tesla $ 42 million. The transaction price includes the factory building itself and 207 acres of land.
Toyota equipment will be removed from the factory and Tesla will not get it. It will be sold at a public auction. Tesla can compete for those machines that are needed (in fact, the equipment for the production of the Toyota Corolla model is almost completely useless for Tesla).
The distressed automobile start-up will not calculate the transaction now, but after the IPO.
The $ 50 million investment that Toyota intends to make in the joint venture also directly depends on whether Tesla will be able to go public until December 31, 2010. If you can’t, the deal with Toyota will be completely canceled. If it does, Toyota will buy $ 50 million worth of shares at a market price in open bidding.
All this information is published in official documents for the Securities Commission. New details confirm the fears of some experts that the Tesla-Toyota alliance could be quite fragile.
As for the joint development of technologies, not a word is said about this in the SEC documents. However, in practice, a group of Toyota engineers have already flown out of Japan and Michigan, and today they are expected to arrive at Tesla's headquarters in San Carlos, California. Here they will meet with Tesla engineers.
NUMMI will assemble an electric Model S sedan at the factory. It is expected that car production will begin in 2012 at a price of about $ 50 thousand. There are plans to produce a smaller and more affordable electric car for $ 30 thousand.
At first, the plant will employ about 1000 workers, but someday it can return to the previous level of 5000 man, as it was during the heyday of NUMMI. Many of Tesla's new employees are recruited from former Toyota employees.
So, the purchase of a NUMMI plant will cost Tesla $ 42 million. The transaction price includes the factory building itself and 207 acres of land.
Toyota equipment will be removed from the factory and Tesla will not get it. It will be sold at a public auction. Tesla can compete for those machines that are needed (in fact, the equipment for the production of the Toyota Corolla model is almost completely useless for Tesla).
The distressed automobile start-up will not calculate the transaction now, but after the IPO.
The $ 50 million investment that Toyota intends to make in the joint venture also directly depends on whether Tesla will be able to go public until December 31, 2010. If you can’t, the deal with Toyota will be completely canceled. If it does, Toyota will buy $ 50 million worth of shares at a market price in open bidding.
All this information is published in official documents for the Securities Commission. New details confirm the fears of some experts that the Tesla-Toyota alliance could be quite fragile.
As for the joint development of technologies, not a word is said about this in the SEC documents. However, in practice, a group of Toyota engineers have already flown out of Japan and Michigan, and today they are expected to arrive at Tesla's headquarters in San Carlos, California. Here they will meet with Tesla engineers.
NUMMI will assemble an electric Model S sedan at the factory. It is expected that car production will begin in 2012 at a price of about $ 50 thousand. There are plans to produce a smaller and more affordable electric car for $ 30 thousand.
At first, the plant will employ about 1000 workers, but someday it can return to the previous level of 5000 man, as it was during the heyday of NUMMI. Many of Tesla's new employees are recruited from former Toyota employees.