After reports last week that Toyota has already begun building a prototype electric car using Tesla battery technology, it now appears that that Tesla is also engaged in the prototype process. The American manufacturer of electric sports cars has announced that by the end of the month it will deliver two prototype models to Toyota using their battery pack technology inside of Toyota vehicles.
This news is the latest development in an ongoing story that began when Toyota and Tesla signed an agreement that would see Toyota invest $50 million in Tesla following an IPO. That IPO generated over $200 million, but has since dropped significantly.
Toyota’s sudden interest in electric cars is seen in part as a new direction by new company CEO Akio Toyoda, as well as a response to competitors like the Chevrolet Volt and Nissan Leaf.
Last year Toyota unveiled an iQ-based city car (above) powered by electric motors and capable of 40 miles on a single charge. That project, however, is said to be separate from the Tesla project and Toyota explores more than one avenue to building a feasible electric car.