Toyota’s electric vehicles will no longer have a piece of Tesla.
Tesla will stop supplying battery packs for electric versions of its RAV4.
The pair began a $100 million deal in 2012, agreeing that Tesla would make battery packs for about 2,600 electric RAV4 vehicles over the course of three years.
But now Toyota is expected to terminate the deal early and stop making the RAV4 EV because the electric version has not sold as well due to its higher price point and the lack of charging stations throughout the United States.
The RAV4 has had some sales success in California because the law there stipulates every car company has to offer “pollution-free” vehicle options, so it is likely Toyota will unveil a new EV option to appease California legislators. It is speculated the automaker will introduce a hydrogen fuel cell vehicle in California next year.
Tesla is also preparing to debut its own battery-powered compact crossover, the Model X, which may appease fans of the RAV4 EV (but be more expensive because it is Tesla after all!) Tesla is also expected to announce a lower-priced sedan model in 2015.