Tesla and Toyota agree tie-up

Nic Cackett

Toyota has agreed to buy a £35m stake in Tesla as the two companies struck a deal to cooperate on development of future electric car technology.

As part of the deal, Tesla will gain access to a recently closed down Toyota car factory in California. The NUMMI plant, capable of building 500,000 vehicles year, will be used to put the Model S saloon into production.

The companies will also form teams of specialists to jointly study the engineering potential and logistical impact of electric vehicle manufacturing.