Upstart Californian electric car company Tesla Motors may be persevering with layoffs and management changes as it struggles to get its own electric saloon car off the ground. However, at least it can now help other manufacturers to get their electric cars on track.
The Silicon Valley electric car company will produce lithium-ion battery packs and chargers for the all-electric version of Daimler AG’s Smart car. After running tests for an electric version of the Smart car in London in 2007, Daimler hopes to introduce them in the USA later this year.
Tesla’s powertrain business is currently the only part of the company that is cash-flow positive – it builds and sells powertrain elements such as battery packs to other car companies.
The aim is for Tesla and Daimler to produce 1,000 of the vehicles this year and next with potentially tens of thousands to emerge after that according to Elon Musk, the chief executive of Tesla who was speaking at the Detroit Auto Show. According to reports the two companies have been collaborating for more than a year but the final version of Tesla’s Smart car battery pack remains under development. The battery packs will be built in California.
Meanwhile, Tesla is still struggling to make its Roadster profitable – according to reports it has delivered around 150 of the vehicles and has a waiting list through to November.
