Toyota has bought a $50m (£35m) stake in electric car company Tesla, in a move that will see the companies join to mass-produce electric cars.
At the same time, California Governor Arnold Schwarzenegger has announced $20m tax break for Tesla. That will help the company begin production of the Tesla S electric performance saloon (pictured) in its new California factory.
The move will create around 1,000 jobs, and the plant will produce around 20,000 cars per year. To date, Tesla has sold around 1,000 Roadsters. The S saloon is yet to go on sale.
The tie-up between Tesla and Toyota will benefit both companies: Toyota will tap into Tesla's high-performance electric car technology, while Tesla will benefit from the Japanese company's mass production techniques and suppliers.
Tesla owner Elon Musk said: "Toyota is a company founded on innovation, quality, and commitment to sustainable mobility.
“It is an honour and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla.”
