Tesla's still got a ways to go before it overtakes those conventional automakers, but darn if it's not on the right track now. The company today announced a deal with Toyota -- yeah,
Toyota -- in order to collaborate on the "development of electric vehicles, parts, and production system and engineering support." Reportedly, the tandem will form a specialist team to further these efforts, with Toyota agreeing to purchase $50 million of
Tesla's common stock issued in a private placement. In the short term, Tesla is purchasing the former NUMMI factory in Fremont, California in order to build the
Model S sedan and other "future Tesla vehicles," which should employ around 1,000 workers now to produce around 20,000 cars per year. For those unaware, the NUMMI facility was recently vacated, leaving 4,500 Toyota employees holding pink slips and ginormous frowns; Tesla CEO
Elon Musk did confirm, however, that some of those have already been rehired. The good news here is that consumers
should see lower prices due to Tesla having access to Toyota's streamlined supply chain (not to mention those hugely leveraged bulk buy deals), but the bad news is that citizens of Downey, California -- a town that was purportedly ready to sign a similar deal with Tesla "tomorrow" -- now have to deal with an erupted bubble. You win some, you lose some, as they say.
posted May 20th 2010 9:43PM
Such a beautiful car.
@Lando Calrissian
Agreed. It looks fantastic. It has a bit of Maserati or even Aston Martin flair in the lines. Looks great. :-)
@SeeKo
I agree. At first I thought of aiming a Lotus Elsie one day [if I ever saved up that much], until I saw this.
I'll aim for the Model S instead, runs on batteries and doesn't need gas.
@Lando Calrissian
NUMMI????????????????That plant is over run with union rats. They will destroy Tesla.
@Lando Calrissian
I completely agree. I am strongly considering it as my future vehicle.
On another note, I did not see this partnership coming. At All. I pray that Toyota might be able to steal some design elements from Tesla, especially for the Prius. A Prius that doesn't make you look like an over-glorified eco pussy... is totally possible now.
@SeeKo Yep, Maserati grill, Aston Martin headlights and a Jaguar XF body. Me want.
@Lando Calrissian
Tesla is the Mercedes-Benz of the future. Just wait and see.
Hopefully the brakes will work
@PENISCRUSHER I'll admit, that was funny. Kudos.
@PENISCRUSHER
HAHA!!!! I agree!!
@PENISCRUSHER
You're just sore because it won't have a penis crusher.
See what I did there?
@PENISCRUSHER
What do i need brakes for? I want to go fast. I'll stop when i have no more juice left. And its an awesome excuse to make, Officer i couldnt use the brakes so i stomped on the gas to use it faster.
Who dosent want to star in thier very own version of speed?
@PENISCRUSHER
They actually work...a little TOO well, from what I hear from my neighbor (he's an engineer or technician for Tesla). Thing practically stops on a dime. Same with acceleration. He said you have to readjust your way of braking, and not in a 'having your brakes replaced' kind of readjustment. He said it was hard to explain, but you definitely get jerked around the first time behind the wheel.
@PENISCRUSHER Afaik, Toyota never had a problem with their brakes ;)
This American Life did a good story on NUMMI. Here's a link to the link:
http://www.autoblog.com/2010/03/31/this-american-life-tells-the-nummi-story/
@CityZen yeah I enjoyed it. I enjoy a lot of american life stories... haven't found one yet that I havent been fully engulfed into.
well, it sounds like a win win for everybody
Now.... let's see some of those cars in real life
Great news for Fremont/NUMMI and Tesla.
The loss of Toyota at that plant was crushing to the community. Tesla likely won't have nearly the number of employees, but it will be a lot better than nothing.
I want that car - might just be the first electric car I own.
I do want to get my hands on that Model S though I'll admit.
I'm from Fremont, originally. It was sad to see so many people laid off from NUMMI when they shut down. Now that Tesla is moving in, surprisingly with Toyota on board, it's good to see that they are rehiring some of those that were recently laid off. They'll be under a totally new contract, of course, and have to start all over with pension/savings/401k stuff, and they'll most likely non-union (which is in some ways better for them, and in some ways worse...but let's not get into that discussion).
Living in San Jose, you do see a few Teslas on the road. My next door neighbor actually works for Tesla, up the peninsula, either in Menlo Park or Palo Alto. So it's interesting to hear some of the stuff going on with the company before it goes public (although I just heard about this deal earlier today). I've heard stories about people trying to apply for jobs, just to steal ideas.
@Rendiggy
It has been known for atleast last 2-3 months that Tesla was getting the NUMMI plant - surprised you didn't hear that. My 2000 Corolla was built in that plant...every time I drive past it I almost hear the old gal give out a sigh :-D
@naashak
Yeah, I'm suprised I hadn't heard about that, also. I thought they had just moved or were scoping out a new or separate facility, but still on the peninsula. Neighbor was talking to me about how his commute would be shorter. Of course, who's to say they can't have more than one facility?
Tesla needs the money, and Toyota needs the reputation boost. It's what we in the industry call a win-win.
Wow, Toyota must be worse off then I thought if they are willing to pay this much for good PR.
@Cash9007 - It sounds like a lot of money but I wonder how much a month of TV and print ads costs. The buzz from this might be worth as much. This is really a "motherhood and apple pie" deal all the way around. How can it not make everyone look good?
Wonder if that means they will have accelerators and brakes that don't work??
Really, guys? More acceleration and brakes jokes for Toyota? You've really got nothing better than that?
Damn. Not Fremont, Michigan?!
holy crap, can't wait for Tesla tanks!!! "unit rrrrready"
@annoynimous
Fuck them. I want my Mirage thanks. DURR DURRR TIS TREE IS SHOOTING AT YOU DURRR DURRR
Joke's on Toyota. Tesla's got a beautiful product, but I don't believe they'll ever be self-sustaining. If the private placements and government guarantees go away, my bet is that they can't make the economics of it work.
http://www.thisamericanlife.org/radio-archives/episode/403/nummi
lol nummi.
There was a really interesting "This American Life" episode about the NUMMI plant. http://www.thisamericanlife.org/radio-archives/episode/403/nummi?bypass=true
Awesome!
I'm so glad the NUMMI plant will be used again, it was so sad seeing it empty.
Hopefully we will see some of Tesla's technology advancements in Toyotas in the near future.
Regenerative Braking + Uncontrollable Acceleration = Perpetual Motion Machine ?
This will definately help. The originals were shipping so slow because of how small the garage where they are made was.
I live in fremont, the nummi and intel plants shutting down was a huge hit to the economy, it left almost 1000 unemployed. This will be amazing.
I live 15 minutes from Downey!!! Grr.... the jobs should be down here!!!
In Long Beach near the Boeing Plant!
This car is amazing !! I would love to see it driving arround. ( i could never afford it.. im only an electrical engineer... )
I wonder.. do americans still lend money to buy a car? or do they really safe money on the bank and then buy it.
cheaper prices? release still 2012? count me in, oh sooo count me in. i would get that car today if it would exist and i would have the money..
Im def thinking about making this my first car... life may be going in the right direction to afford it
Looks like a missed opportunity on the part of Ford and GM as Toyota is comforting his lead on the eco-friendly car front.
I want a Tesla Tank!
@Steafan
+1 for the Red Alert reference!
Having the plant in Fremont makes a great deal of sense for Tesla. Their engineers can drive 30 minutes and spend time in the factory, seeing what issues their designs cause. The management can deal with problems. And the factory can feel like it's part of the team because they will get invited up to the HQ.
NUMMI did things differently, and I'm glad they're getting another shot.
This is good news. I like Tesla and would but one if I could afford to.
Tight!