Tesla Gets A Deal. And An Endorsement

Bertel Schmitt
by Bertel Schmitt
tesla gets a deal and an endorsement

Last year, Toyota invested $50 million into Tesla. Tesla turned around and spent $42 million of the new money and bought the land and buildings of site 2 of NUMMI in Freemont, CA. As it turns out, the deal did not include the fixtures. Nothing another $17 million could not fix.

According to The Nikkei [sub], Tesla Motors paid Toyota “a discounted price of around 17 million dollars” for production machinery used by NUMMI and replacement parts. Tesla wants to use the pre-owned equipment to produce new vehicles on NUMMI’s former site beginning in 2012.

In related news, Tesla’s much maligned idea of stringing notebook batteries together just received a roaring endorsement. Tesla’s battery-partner Panasonic has expanded on the idea and developed proprietary technology to turn conventional notebook batteries into a power source for EVs. According to The Nikkei [sub], “Panasonic has apparently been able to keep the battery’s price at less than half that of dedicated batteries with a comparable output.”

The first batch of batteries will go to start-up Zerosports, which landed a contract for 1,000 EVs to be supplied to Japan Post Service Co. The price of the vehicles is said to be 20-30 percent below the bids of major automakers.

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  • Redmondjp Redmondjp on Feb 17, 2011

    Thousands of tiny laptop battery pack cells in series-parallel combinations, stuffed into every nook and cranny of the vehicle, all tab-welded together. What could possibly go wrong with that? (BTW I'm an EV supporter, I even owned one for awhile, but there are several reasons why all of the factory EVs made thus far by other mfgrs have NOT used this type of battery setup). At least the NUMMI plant will stay in use . . . for now.