Fact or Fiction? Toyota to Ink Deal with Tesla for $1 Billion

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Tesla Motors (NASDAQ: TSLA) announced earlier today that the EV manufacturer is negotiating a potential $1 billion deal with Toyota (NASDAQ: TM). In a conference call with analysts after market close, Tesla Co-founder and CEO, Elon Musk, stated the Q2 results posted by Tesla were the best ever in its short history, with solid demand for the Tesla Roadster sports car and the upcoming Model S sedan (pictured above).

Initially, Tesla and Toyota had agreed to a $100 million deal that would
allow Tesla to leverage some of its ideas and capabilities on Toyota’s
coin, an agreement that has definitely worked thus far.  It was Tesla who provided
Toyota with a turn-key solution to the burgeoning problem of how Toyota
would come up with the drivetrain for the Toyota RAV4 EV in such a
timely fashion. Answer: Tesla.

Tesla’s earnings after market closed were a mixed bag: they doubled
revenue but missed earnings by 2 cents, posting a 53-cent loss versus
the 51-cent loss Wall Street expected.  Tesla stock tanked more than 4%
after hours, while Toyota stock dropped ever so slightly (.20%). More
news to follow.

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