By Silicon Valley / San Jose Business Journal

It looks like Toyota Motor Corp. liked what it saw on the electric RAV4 prototype Tesla Motors Inc. has delivered.

The companies announced on Friday that they have signed an agreement to initiate the development of the RAV4 as their first jointly developed electric vehicle with a target of bringing them to market in 2012.

Palo Alto-based Tesla said it plans to produce and deliver a fleet of prototypes to Toyota for evaluation this year.

The companies didn't say where the new vehicle will be manufactured. It is being built using Tesla's powertrain and Toyota's body.

Tesla and Toyota announced their electric vehicle partnership in May as part of a $50 million investment by the Japanese car company in the Silicon Valley electric vehicle pioneer.

Copyright 2010 American City Business Journals

http://sanjose.bizjournals.com/sanjose/stories/2010/07/12/daily54.html?ana=thestreet

Copyright bizjournals.com 2010

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