Arnold Schwartzenegger, California’s Governator, broke the news yesterday about a joint venture between Tesla Motors and Toyota. Details are still emerging, but it looks like the companies will work together to produce the Tesla Model S sedan. Tesla has purchased part of the former NUMMI plant to build the Model S, and the state has offered Tesla tax breaks on capital equipment purchases as an incentive. The company projects short term employment of some 1,000 workers to assemble the Model S; long term, Tesla estimates that 5,000 direct and 5,000 indirect jobs will be created.
This is a huge win for Tesla, who now has a partnership with a major automobile manufacturer and access to platforms, engineering and test resources. It’s a win for Toyota, who gets to re-open a shuttered plant and associate themselves with a leader in electric vehicle technology and manufacturing. It’s a win for the rest of us, as the Model S now has a clearer road to development and production.