Tesla Discloses Terms for Toyota Investment and Purchase of Former NUMMI Plant
Tesla Motors says in a regulatory filling this week that it has agreed to pay Toyota Motor Corp. $42 million from the proceeds of its upcoming public offering for the former New United Motors Manufacturing plant and 207 acres of property.
Quote from the article:
Source: Tesla Discloses Terms for Toyota Investment and Purchase of Former NUMMI Plant
Quote from the article:
The plant equipment is to be sold at auction by Toyota and Tesla will be able to bid on items it wants. The Northern California-based electric-vehicle maker also reiterated in its Securities and Exchange Commission filing that terms of the Toyota-Tesla technology sharing agreement that shook the industry when announced last week are still being worked out and that the companies do not have a binding agreement to work together. Further, the filing shows that Toyota's agreement to invest $50 million in Tesla is contingent on Tesla going public by the end of the year. If economic conditions or other events prevent Tesla from launching its initial offering by Dec. 31, the capital investment deal is subject to renegotiation. Those terms have touched off a bit of worry in some quarters that the Toyota-Tesla deal is shakier than first imagined. But the cautious language it typical of SEC filings, which usually are couched in worst-event terminology so that companies can't be accused by the commission of falsely inflating their value prior to a stock offering. Ricardo Reyes, Tesla's vice president for communications, said in an interview this morning that deal-making with Toyota is moving forward as planned. "We never said we had a detailed agreement, we told everyone right from the start that we did not have specifics," Reyes said. The SEC filing characterizes the deal, announced last week, as "intention to cooperate on development of electric vehicles...." |
Source: Tesla Discloses Terms for Toyota Investment and Purchase of Former NUMMI Plant
