Toyota ended its 6 years partnership with Tesla, as it finalized sales of its remaining Tesla stocks in 2016. Toyota-Tesla partnership was announced in May of 2010, when Toyota purchased 3% stake in the company via public shares, valued at USD 50 million.
As a result of this partnership, the RAV4 EV was developed, based on Tesla powertrain, but unfortunately Toyota didn’t get more benefits out of this deal. The deal finally went sour in 2014 and Toyota shifted its focus toward their very own EV division in November 2016. By the end of 2016, all shares were sold, though company did not disclose the sale off value, but Tesla stocks were valued at USD 538 Million in June 2016. Tesla shares reportedly went a further 60% higher than their 2016 valuation.
Daimler, parent group of Mercedes-Benz, also made a similar move; it acquired 10% share in Tesla, but later distanced itself, selling all of its shares by 2014 and shifting focus on its own EV vehicles.
“Toyota originally had a strong cutting-edge reputation with its hybrid electric vehicles,” Akita said. “But now the market considers them as a follower in the electric vehicle business, and maybe Tesla the leader in terms of brand image or reputation. Now [Toyota] needs to recover its previous position.”