Tesla to Stop Supplying Toyota With Batteries for RAV4 EV

Tesla has announced its deal to supply Toyota with battery packs for the RAV4 EV will conclude this year.

Toyota owns 2.4 percent stake in Tesla, and said in May 2012 that it would purchase components for 2,600 RAV4 EVs over the course of three years. The Japanese automaker is expected to end the current RAV4 EV model this year, so Tesla expects the production activities under the program to end this year.

SEE ALSO: 2012 Toyota RAV4 EV Review – Video

The supply deal has generated $15.1 million of revenue for the American electric automaker in the quarter that ended March 31. Conclusion of the program comes as Tesla gears up to expand global sales of its Model S and is getting ready to produce its Model X crossover, which will begin deliveries in 2015.

Toyota has not revealed what its plans are for the future of the RAV4 EV model.

GALLERY: 2012 Toyota RAV4 EV


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