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Toyota Motor Corporation
Toyota RAV4 Program
In July 2010, we and Toyota entered into a Phase 0 agreement to initiate development of an electric powertrain for the Toyota RAV4. Under this early phase development agreement, prototypes would be made by us by combining the Toyota RAV4 model with a Tesla electric powertrain. Pursuant to the agreement, Toyota will pay us up to $9 million for the anticipated development services to be provided by us. During the three months ended March 31, 2011, we recognized $1.2 million in development services revenue. Through March 31, 2011, we received total payments from Toyota of $3.5 million under the Phase 0 contract service agreement.
In October 2010, we entered into a Phase 1 contract services agreement with Toyota for the development of a validated powertrain system, including a battery, power electronics module, motor, gearbox and associated software, which will be integrated into an electric vehicle version of the Toyota RAV4. Pursuant to the agreement, Toyota will pay us up to $60.0 million for the successful completion of certain development milestones and the delivery of prototype samples, including a $5.0 million upfront payment that we received upon the execution of the agreement. During the three months ended March 31, 2011, we completed two milestones and along with the amortization of our upfront payment and the delivery of certain prototype samples, we recognized $14 million in development services revenue. Through March 31, 2011, we have received total payments from Toyota of $7.3 million under the Phase 1 contract service agreement...