Toyota Motor Corp ended its collaboration with Tesla Motors and has sold its stakes in the company. According to reports, Toyota held 1.43 percent in Tesla as of July 2016.
Toyota spokesman Ryo Sakai said, via Reuters, “Our development partnership with Tesla ended a while ago, and since there has not been any new developments on that front, we decided it was time to sell the remaining stake.”
Toyota had in 2010 acquired a $50 million stake in Tesla and had sold a shuttered California factory to Tesla for $42 million. Both the companies also jointly developed RAV4 electric vehicles in Canada in 2011 and sold about 2,500 units over three years.
It is interesting to note here that last year in November Japanese automaker has formed its own unit to develop electric cars and thus has conveyed its intentions to foray into electric car market soon.
In May 2010, when this partnership took place it was called a “historic’ partnership and leaders from both the companies had showered praises on each other’s company. The reason behind the end of the collaboration cited out by various reports is the cultural clashes between both the companies. Toyota being a traditional Japanese automaker and Telsa born in Silicon valley with a huge appetite for risk could match each other’s expectations.