Toyota to sell Tesla-powered electric car

23 July 2010

An updated version of the all-electric Toyota RAV4 EV, a vehicle that was available to lease in America from 1997 to 2003, is to be developed with help from Tesla. Toyota expects to mass-produce the new car by 2012.

Toyota, a company that has gained a reputation for favouring hybrid technology such as that used in its Prius over pure electric vehicles, recently acquired a £35m ($50m) stake in California electric-sports car maker Tesla.

The move by Toyota to invest in mass-produced electric cars is in contrast to the position adopted by its rival, Honda.