Toyota Cuts Ties With Tesla; To Build Own EVs
Toyota Motor Corp has sold all its shares in the Tesla Inc and will be no more working with the company for building EVs.
The Japan’s largest automaker had acquired just about 3 percent shares in the Tesla, but according to it, it sold the shares in Tesla Inc. by the end of 2016 and canceled all tie-ups with the US-based carmaker for joint development of electric vehicles. The stakes were acquired at the cost of $50 million.
According to the company, the decision to sell all the shares in the Tesla was taken at the end of the year 2016, in a regular, periodic review of the Toyota’s investments. It had initially sold a part of the shares in 2014.
The move might affect quite a few people but Toyota and Tesla’s development partnership ended a while back, and since there weren’t any further developments regarding projects, the Toyota decided to let go and sold the remaining stake.
Toyota has appointed its president in November 2016 for leading the newly-formed division of electric cars. This marks a shift in the company’s policy and highlights its commitment for developing the technology which has been slow to adapt.
The department houses the new unit for planning Toyota’s strategy. The approach will help in developing and marketing EVs as the company hopes to comply with the global tightening of emissions and their regulations.