Partnership

Tesla, Toyota Team Up for Electric Car

Will develop and build new cars in California.

Maybe this will help Toyota recover from its recall scandal? Tesla Motors Inc. and Toyota Motors are teaming up and will be building electric cars at a recently closed auto plant in California. Toyota President Akio Toyoda announced his company is dropping a cool $50 million to develop an electric vehicle as part of the deal for when the company goes public. Tesla CEO Elon Musk said his company will be producing the new Model S electric sedan from a plant in Fremont. Tesla's electric sports car currently costs $109,000, but the Model S will be priced at $49,000 and able to run 300 miles on a three- to five-hour charge. Tesla ruffled the feathers of officials from the city of Downey, who were expecting the company to lease property from them and had spent months wooing the carmaker.