• July 19, 2010

Tesla Motors, which makes electric roadsters, has inked a deal with Toyota to co-produce an all-electric version of the latter's RAV4 SUV.

Toyota plans to start selling the vehicle in the U.S. by 2012, with prototypes to be made within this year.

The companies say the first prototype has already been built and is now undergoing testing. In May, they said they were to co-develop vehicles and parts.

Per a corporate release: "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."