Details have been revealed about Toyota’s plans to pay Tesla Motors to develop an electric powertrain system for the electric version of the Toyota RAV4.
Tesla filed an 8-K with the United States Securities and Exchange Commission to disclose its agreement. It outlines that Tesla entered into a phase one contract services agreement with Toyota for the development of a validated powertrain system on October 6. This will include a battery, power electronics module, a motor, gearbox and associated software.
Toyota will pay Tesla around $60million for the development services from Tesla with the parties to mutually agree on the final specifications including specifications, deliverables, payment amounts and the schedule within 60 days.
The two companies had entered into an agreement to develop an electric powertrain system for the RAV4 back in July with Toyota purchasing $50million of Tesla’s common stock in a private placement transaction.
