The two companies are hoping to collaborate on the design for an electric car built by Tesla. The cars would be built in Fremont, California. Toyota would be helping with “parts, production, and engineering.”
Toyota, I am sure is getting a cut of the profit that Tesla makes or is getting a fixed amount. Tesla is getting a company to produce their car, saving costs (building production factories). It seems like a good idea and I hope it works.
Essentially, it looks like the all-electric RAV4 that they’re working on will have a Tesla engine with a Toyota chassis.
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