Toyota & Tesla talking $1 Billion deal?

[Norbert]

Original article with the confirmation from a "Tesla official":
Tesla Says Its Talking $1 Billion Deal With Toyota - AutoObserver

A longer article from AutoObserver also mentioning it:
Tesla Talking $1 Billion Deal With Toyota? - AutoObserver

[Didn't find the article on autoblog green, though]

 

[PopSmith]

[Didn't find the article on autoblog green, though]

They posted it not too long ago but cited AutoObserver which might be why you didn't notice it yet.

Tesla talking billion dollar deal with Toyota? - Autoblog Green

While I'm definitely not a business expert a $1B deal, depending on the details, would almost be an acquisition by Toyota in my eyes. Tesla's market cap is currently $2.37B so a $1B deal is ~42% of their current (market) worth if I understand things correctly.

Tesla Motors Inc: NASDAQ:TSLA quotes & news - Google Finance

 

[stopcrazypp]

The only thing I can think of that would need $1 billion is Bluestar. Tesla might partner with Toyota to do Bluestar (maybe have a Toyota/Lexus clone version?). Just like How Toyota and Subaru are partnering on the FRS and will have clone versions.

It would solve the problem of getting the supply chain and tooling to build it, although the NUMMI plant is probably big enough to handle Bluestar.

 

[TEG]

Yep... Although don't call it NUMMI anymore... "The Tesla Factory."

 

[Doug_G]

While I'm definitely not a business expert a $1B deal, depending on the details, would almost be an acquisition by Toyota in my eyes.

Not at all. Buying goods from a company doesn't give you shares. Also they didn't say that would all be in one year, did they? It could be a five-year deal for example.

 

[Norbert]

At this point it seems there is true cooperation between Toyota and Tesla. If Tesla wasn't Tesla, it would not have been able to now provide that which may be worth $1 billion. Hence Toyota will not buy Tesla.

 

[efusco]

Tesla Says Its Talking $1 Billion Deal With Toyota - AutoObserver

Tesla Motors CEO Elon Musk announced Wednesday that the Silicon Valley EV maker is negotiating a potential $1 billion deal with Toyota. In a conference call with analysts, Musk said the just-ended second quarter was the best in Tesla's history, with tremendous demand for the Roadster sports car and the upcoming Model S sedan—both battery-electric vehicles—as well as signing a $100 million deal with Toyota, and "we're in discussions with them for a deal that is an order of magnitude larger than that." A Tesla official later confirmed to AutoObserver that by "order of magnitude," Musk was stating that the 8-year-old company was discussing a $1 billion deal with the world's largest automaker.

 

[NigelM]

At this point it seems there is true cooperation between Toyota and Tesla.

Toyota refers to itself as TMC..... :wink:

 

[AnOutsider]

Tesla Says Its Talking $1 Billion Deal With Toyota - AutoObserver

Been discussed quite a bit in other threads: Tesla reports second-quarter

 

[efusco]

Ah, sorry, searched for a relevant thread but didn't think to look in there. Mods can feel free to delete.

 

[Norbert]

Not at all. Buying goods from a company doesn't give you shares. Also they didn't say that would all be in one year, did they? It could be a five-year deal for example.

If Toyota makes Tesla drive trains a key component of their EV strategy for the foreseeable future, it would make sense for a large part of the deal to go towards buying a long-term commitment from Tesla. And, Toyota will want Tesla's survival to be more or less guaranteed. This would also speak in favor of making a deal early, even if it is a large one. Also, at this point in time, Tesla probably has a much stronger interest in such a deal, then it would after successfully establishing Model S on the market.

 

[AnOutsider]

They may even spin it out who knows... it's a pretty big topic in itself

 

[Jaff]

From past articles I've read, the Tesla factory, under it's former ownership, was supposedly capable of manufacturing 500,000 cars / year.

The only thing I can think of that would need $1 billion is Bluestar. Tesla might partner with Toyota to do Bluestar (maybe have a Toyota/Lexus clone version?). Just like How Toyota and Subaru are partnering on the FRS and will have clone versions.

It would solve the problem of getting the supply chain and tooling to build it, although the NUMMI plant is probably big enough to handle Bluestar.

 

[ckessel]

My take away from a $1B deal is that, hopefully, it means both Telsa and Toyota can support Tesla auto servicing. One of my concerns was that Telsa wouldn't be able to afford service centers in anywhere close to the ubiquitous nature Toyata (or other manufacturers) have them. If Toyota ends up that heavily invested in Tesla's technology though, they'll be heavily invested in being able to service it too.

 

[efusco]

My take away from a $1B deal is that, hopefully, it means both Telsa and Toyota can support Tesla auto servicing. One of my concerns was that Telsa wouldn't be able to afford service centers in anywhere close to the ubiquitous nature Toyata (or other manufacturers) have them. If Toyota ends up that heavily invested in Tesla's technology though, they'll be heavily invested in being able to service it too.

Interesting thought that hadn't occurred to me...though it should have since I'm in an area pretty remote from any of the current Tesla shops...Southwest Missouri.

 

[tdelta1000]

For a Tesla fan like myself, the news was good to hear. The deal potential deal between TM and TMC would further strengthen Tesla Motor's philosophies about EVs. If a deal goes through, I think it would be historical as well.

 

[vfx]

Isn't this called a takeover?

 

[doug]

Ah, sorry, searched for a relevant thread but didn't think to look in there. Mods can feel free to delete.

They may even spin it out who knows... it's a pretty big topic in itself

Discussion moved here, thanks. =)