'Last week, Tesla and Toyota announced that they were partnering in a joint bid to developing electric cars, auto components, production systems and engineering support.
In this regard, Toyota said it will buy an undisclosed stake in Tesla for $50 million.
Tesla also said it will buy a shutdown Toyota-General Motors Co. joint venture factory, known as NUMMI (New United Motor Manufacturing Inc.), in California for $42 million to build its Model S, a sporty electric sedan, and other vehicles.
However, strains began to appear when Toyota said it will continue to develop its own range of electric vehicles though Tesla's long-distance models would give it more options.
In its amended IPO filing, Tesla said the two companies only plans and have not agreed to make the electric vehicles. "We have not entered into any agreements with Toyota for any such arrangements, including any purchase orders, and we may never do so,"'
Tesla's Rachel Konrad also recently told Automotive news
“We need about 500,000 square feet for our plant, NUMMI is 5 million.”
These are huge blows to the electric automaker since Tesla has just moved all of their offices to California in anticipation of this deal going through. If the deal falls through, one of my sources says they are planning on moving all of their offices again to a smaller factory.
It has now been 6 years since the creation of Tesla motors and the company has yet to see a profit.