Tesla first announced plans in July for an agreement with Toyota to develop an electric version of the RAV4 featuring a Tesla powertrain. Now it's in writing. Tesla filed a form with the Unites States Securities and Exchange commission on Wednesday disclosing its $60 million agreement with Toyota.
Tesla has long discussed plans to build up a powertrain supply business as an additional revenue stream to selling cars. One of the conditions for Tesla to draw some of the DOE loan funds is signing up commercial customers for powertrain components.
Toyota will pay for the work in installments over the course of the agreement, and the schedule and amount of these installments will be finalized within the next two months.