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Tesla deal with Toyota




Tesla Motors CEO Elon Musk (L) and Toyota CEO Akio Toyoda shake hands after a news conference at Tesla Motors headquarters May 20, 2010 in Palo Alto, California.
Tesla Motors CEO Elon Musk (L) and Toyota CEO Akio Toyoda shake hands after a news conference at Tesla Motors headquarters May 20, 2010 in Palo Alto, California.
Justin Sullivan/Getty Images

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Toyota Motor Corporation and auto-upstart Tesla Motors say they'll work together to develop an all-electric version of Toyota's RAV4 SUV. The plan is to make the car at the Nummi plant in Freemont, which Tesla purchased for $42 million. Tesla, the brainchild of Elon Musk, an engineer and computer programmer who made his fortune as co-founder of PayPal, has already developed a proto-type electric drive train for the RAV4. Meanwhile, GM has its Volt coming out, Nissan has the Leaf, and a slew of other electric cars are on the horizon…does this Tesla-Toyota deal put them in the lead in the race to develop technology that can replace the gasoline engine?

Guest:

Diarmuid O’Connell, VP for Business Development, Tesla