Essay on Tesla 's Electric Car For Toyota

1793 Words Oct 14th, 2016 8 Pages
While Tesla designs, manufactures, sells and services their own vehicles they recognize that due to the company being one smallest auto manufacturers in the world that they needed strategic partnerships to stay in business. The first partnership that Tesla entered into was being with Daimler in 2010. For a 10% stake in Tesla, Daimler got Tesla’s lithium-ion battery packs into 1,000 of its electric smart cars. With the infusion of capital from Daimler, Tesla could continue with their research and development and stay in business. The investment also enables the two companies to work together further on the battery systems and electric drive systems. In 2011, Toyota acquired a 3% stake in Tesla and in return Tesla agreed to collaborate with Toyota on its first electric car. The electric car for Toyota was the company’s RAV4 model and Tesla was responsible for ‘supplying all of the RAV4’s electric powertrain components, including the motor and lithium-ion battery pack” (Dobrinova, 2012, para. 3). Besides the capital that Toyota and Daimler invested into Tesla to keep the company going they also gave Tesla the ability to keep their costs low on basic component parts due to the economy of scale with the larger companies.
In 2014, Tesla partnered with Panasonic to build a “Gigafactory” to manufacture its battery packs. This factory, located in Nevada, when completed will be the single largest battery manufacturing plant in the world. In the agreement, “Tesla will…

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