Toyota ends deal with Tesla on RAV4 EV and bets on Hybrid Fuel Cell Auto's

[David]

G. David Felt

Alternative Fuels & Propulsion writer

www.CheersandGears.com

It seems like yesterday or about 2 years ago when Toyota announced the RAV4 EV to the world. At this time they announced a 60 million contract with Tesla to produce powertrains for the RAV4 EV.

Full story: http://editorial.autos.msn.com/listarticle.aspx?cp-documentid=1169602

Fast forward to Oct 2013 where Elon Musk in speaking his mind calling Hydrogen powered cars 'bullsh$t'.

http://editorial.autos.msn.com/blogs/post--elon-musk-calls-hydrogen-powered-cars-bullsht?_blg=3

Earlier this year, Toyota made news when they stated they would discontinue the RAV4 EV. A joint project that had a Tesla powertrain in a Toyota CUV Body. Toyota stated that their contract with Tesla called for 2500 battery electric powertrains for the RAV4 EV and it was fulfilled.

http://bizbeatblog.dallasnews.com/2014/05/toyota-will-cease-production-of-electric-models-of-rav4.html/

On April 30th 2014 Toyota became the first auto maker to sponsor the Milken Institute Global Conference with stating their commitment to Hybrid auto's powered by fuel cells.

http://pressroom.toyota.com/releases/toyota+2014+milken+institute+global+conference.htm

Today we now have stories that tend to wrap this all up in a nice package. Stories such as MSN's about Toyota betting on Fuel cells over batteries seem to point to a war of words. Was the contract terminated due to Elon's BS comment or more to do with Tesla bringing out their own CUV EV?

http://editorial.autos.msn.com/blogs/post--toyota-betting-on-hydrogen-over-batteries-for-future-ev-models

Either way, it would seem that the RAV4 EV is dead, Toyota is betting on Hybrid Fuel Cell Auto's and Tesla has their upcoming CUV EV to take the place left empty by the RAV4 EV demise.

Sound off, do you think Toyota or Tesla have the best game plan moving forward? Both have deep pockets, both have commitment. Who will win?

[Drew Dowdell]

Fuel cells have an even smaller refueling network than EVs do.. At least in an EV.. if I need to plug in to a 110v outlet and wait... I can.

Try doing that with a Fuel Cell.

[David]

Fuel cells have an even smaller refueling network than EVs do.. At least in an EV.. if I need to plug in to a 110v outlet and wait... I can.

Try doing that with a Fuel Cell.

Makes one wonder if Toyota will get into helping build Fuel Cell Stations.

[A Horse With No Name]

Doubtful. I read some analyst who said that Tesla was going to be broke and done by 2017. Their stock is wildly over valued right now.

Edited May 31, 2014 by A Horse With No Name

[David]

I have a hard time seeing Toyota building fleets of Fuel Cell Hybrids if there is no way to fuel the cell. This is a chicken / egg issue and the only way I can see them selling a fleet of these auto's is if they start by having at least a few fuel cell stations at dealerships or 1 in an area that can service multiple dealerships.

[Drew Dowdell]

Doubtful. I read some analyst who said that Tesla was going to be broke and done by 2017. Their stock is wildly over valued right now.

Stock price has nothing to do with Tesla's cash situation. As long as they have cash... they can build cars.

Elon Musk is worth $11.6 billion alone.... as long as he is willing to put cash into the company, Tesla will survive. Tesla is a personal source of pride for Elon, so I don't think he'll walk away that easily.

[David]

Doubtful. I read some analyst who said that Tesla was going to be broke and done by 2017. Their stock is wildly over valued right now.

Stock price has nothing to do with Tesla's cash situation. As long as they have cash... they can build cars.

Elon Musk is worth $11.6 billion alone.... as long as he is willing to put cash into the company, Tesla will survive. Tesla is a personal source of pride for Elon, so I don't think he'll walk away that easily.

Agreed, his dislike for Fuel Cell and CNG and his passion for getting his money out of something. I can see him keeping Tesla break even to positive for a while. Eventually when he does loose interest, he will sell it off to recover his investment. I do not see Tesla going away like Fisker did.

[Drew Dowdell]

No... he'll sell to one of the big-guys first. I could see one of the Germans trying to pick up Tesla or possibly even GM. GM sees them as enough of a threat and has the "if you can't beat'em, buy'em" mentality that Google and Microsoft have.

[Z-06]

If I was GM I would not buy Tesla now. I possibly see MB or Toyota looking for that piece of electric furniture.

[Drew Dowdell]

If I was GM I would not buy Tesla now. I possibly see MB or Toyota looking for that piece of electric furniture.

Now? No.... wait for the company valuation to come back closer to reality first.

I don't think any company would buy them right now with a $28B stock market valuation.... that is a guarantee to lose money.

[A Horse With No Name]

They are wildly over valued. I could see the Germans picking them up before anyone.