Electric Toyota RAV4 on the Way

Electric-vehicle manufacturer Tesla, which just took its stock public, and Toyota announced that they have signed a contract to begin the development of an electric version of the Toyota RAV4 compact SUV to go on sale in 2012.

Tesla has built a prototype that is being tested currently and intends to deliver additional models this year, the automakers reported in a statement.

CEOs Elon Musk of Tesla and Akio Toyoda of Toyota revealed in May the venture that includes Toyota selling Tesla a Fremont, California assembly plant and purchasing a $50-million stake in the electric-vehicle corporation.

On July 10, Tesla announced that it will supply two prototype vehicles to Toyota, the largest automaker in the world, without specifying the models. While Toyota also plans to test an electric version of the Corolla small sedan, the RAV4 is better equipped to handle the weight of the Tesla battery pack, a source close to the matter reported last week.

The carmakers may also develop an electric version of the Lexus RX luxury sport-utility vehicle, said the source, who requested not to be identified because the automakers had not yet announced the vehicles.

Tesla’s Plans for the RAV4

In a statement, Tesla expressed its goals for the partnership with Toyota: "Tesla seeks to learn and benefit from Toyota's engineering, manufacturing, and production expertise, while Toyota aims to learn from Tesla's EV technology, daring spirit, quick decision-making, and flexibility."

Currently, Tesla sells the Tesla Roadster, an electric sports car with two seats and a retail price of more than $100,000. Later in 2011, Tesla intends to start production of the 2012 Tesla Model S, an electric sedan that can seat up to seven people. That vehicle will be manufactured at the Fremont, California plant that General Motors and Toyota operated jointly before GM declared bankruptcy.

In the 1990s, Toyota used an earlier iteration of the RAV4 for an electric vehicle when California mandated carmakers to offer zero-emissions vehicles. That version of the electric Toyota RAV4 competed with GM’s EV1 electric vehicle.

A few of those electric RAV4 SUVs are still up and running, including some that Toyota uses at its port facilities in Newark, New Jersey.

Already a leader in the industry for its gas-electric hybrid vehicles such as the Prius, Toyota is also searching for additional partners to create future alternative-fuel solutions. Indeed, partnerships with other companies is predicted to be a critical part of Toyota’s alternative-fuel strategy, executives from the automaker have said.