On Monday, a Toyota spokeswoman said in a statement that the Japanese carmaker firm in silence sold off its stake in the Tesla Inc(NASDAQ:TSLA) last year, rounding a six-year partnership between the two giants.
According to the statement this sale was part of a regular review of Toyota’s investments, noting that a contract between the two companies to build electric vehicles together finished in 2014.
Japanese giant Toyota and Tesla Inc(NASDAQ:TSLA) for the first time unveiled their partnership in May 2010, a month before Tesla’s IPO. The two companies reportedly settled the deal at a time when established automakers were contending to make more environmentally friendly models.
As per publications, Toyota at that time agreed to purchase $50 million of Tesla stock, and the two companies settled to cooperate on electric vehicles. Tesla also bought an assembly plant in California that had been part of a joint venture between Toyota and GM (GM).
Soon after that started the manufacturing of Toyota RAV4 models with Tesla electric powertrains but the partnership reportedly went high by the end of 2014 amid culture clashes.
Meanwhile in the end of 2016 Toyota publicized that it was increasing its own electric car efforts, making a special division for their development without any mention of Tesla.
“Tesla has developed beyond being a test bed for interesting electric vehicle technologies to becoming a full-fledged competitor of traditional automakers in the electric vehicle space,” said James Chao, Asia-Pacific managing director for consultancy IHS Automotive. “It makes sense that Toyota is distancing themselves from Tesla.”
More Toyota declined to comment on when the company sold its Tesla Inc(NASDAQ:TSLA) stake and on which price.