Leading auto maker in the world Toyota has terminated its deal with United States electric auto maker Tesla Inc on electric cars.
Though there were no Toyota official to confirm the news, report has it that Toyota terminated the deal with Tesla to commence electric car project on its own after seven years of partnership with Tesla.
|Image credit: Today.|
In 2010, Toyota bought 3.15% shares from Tesla at $50 million agreeing on a comprehensive corporation on electric cars. Two years later they were able to manufacture an electric powered sports utility vehicle which they sold 2500 units of the car in California and other markets.
Toyota late last year sold all the shares it had with Tesla as part of its effort to “review destinations for investment,” the Asahi Shimbun reported.
Toyota, for long focused on fuel-cell technology which emits only water from its exhaust pipe as its future green-car strategy.
Fuel cells work by combining hydrogen and oxygen in an electrochemical reaction, which produces electricity. This can then be used to power vehicles or home generators.
But a lack of hydrogen refuelling stations has been a major hurdle to bringing fuel-cell cars into the mainstream.