The new partnership between Tesla Motors and Toyota intends to make electric cars at the auto plant in Northern California. The new collaboration will be based on the development of electric vehicles, parts, production systems and engineering support.
Toyota is going to purchase the $50 million of Tesla’s common stock. Tesla has purchased the former NUMMI factory in Fremont, California that used to produce the Toyota Corolla and Tacoma.
The two companies announced that they expect to create thousands of job places. The plant has the capability of employing up to 10,000 employees. The factory is capable of producing half a million vehicles per year or approximately 1 percent of total worldwide car production.
The factory is located in the city of Fremont near Northern California’s Silicon Valley, very close to the Tesla’s Palo Alto headquarters. The location means Tesla can hire best-in-class engineers in Silicon Valley. The short distance also ensures a feedback between engineering, manufacturing and other divisions within the company.
“Toyota is a company founded on innovation, quality, and commitment to sustainable mobility. It is an honor and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla,” said Tesla CEO and co-founder Elon Musk.
Governor Arnold Schwarzenegger also spoke at the press conference and thanked the companies for bringing their business to the state. Schwarzenegger said: “This all happened because we created tax incentives for this company and this partnership“.
