This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tesla and Toyota: Electric Company

NEW YORK ( TheStreet) -- Tesla Motors (TSLA - Get Report), the Palo Alto, Calif., electric car company that was taken public Jun. 29, says it will have two rechargeable electric auto prototypes ready for Toyota (TM - Get Report) this month as a first step in their partnership, according to a Bloomberg report.

JB Straubel, Tesla's chief technology officer, tells Bloomberg that both prototypes are modified Toyota vehicles.

Toyota announced in May that it would pour $50 million into Tesla so they could develop electric cars together. Straubel says it's "exciting" to see the initial results of Toyota's investment.

John O'Dell, a researcher at tells Bloomberg that Tesla is currently the only one in the market for electronic controls for battery vehicles and therefore ahead of the game in this area. This type of know-how is becomingly increasingly important as automakers such as Toyota face more and more pressure to develop energy-efficient and environmentally friendly vehicles in markets around the world.

Still, since its IPO, shares of Tesla stock have fallen about 10%. This was expected by many in the investment community, who predicted that the initial excitement would be short lived.

The company has only one, very high-end car on the market right now -- the $100,000 electric Roadster sports car. By 2012, it hopes to begin delivering its $49,900 Model-S car, which currently only has one prototype. It will be up against a lot of competition by the time it arrives.

The Nissan (NSANY) Leaf and GM's Chevy Volt are among the competition that will be getting a headstart ahead of the Model-S. They're expected to arrive in the market this year.

Tesla's IPO has been frequently compared with that of lithium-ion battery maker A123 Systems ( AONE) which debuted on the NASDAQ after much anticipation last September, but has fallen about 56% since.

Shares of Tesla are down 1.2% to $17.19, while A123 stock has fallen 4.6% to $8.88. Meanwhile, Toyota stock is up 0.3% to $71.30. Nissan stock has risen about 1% to $14.71.

-- Reported by Andrea Tse in New York


Get more stock ideas and investing advice on our sister site,

Follow Andrea Tse on Twitter and become a fan on Facebook.
Copyright 2010 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NSANY $17.87 -5.95%
TM $102.96 -3.20%
TSLA $247.54 -1.60%
AAPL $95.03 -2.90%
FB $116.73 7.20%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs