The outlay is a mere drop in the bucket for the world’s largest car company, but one that generates rich dividends. The joint venture with Tesla Motors, which received the $50M investment from Toyota, calls for the manufacture of its 300M per-charge “Model S” sedan at the Fremont plant. Toyota will produce its own line of green cars.California Governor Arnold Schwarzenegger put his prestige behind the deal, participating in the press conference announcing the deal with Tesla. He also accidently tipped the media off on the news. He praised Toyota and Tesla for stepping up “in a big way not only creating vehicles that reduce emissions and appeal to consumers but also boost economic growth.”
The venture will create 1,000 “green” jobs, which is 25 percent of the former Toyota/GM work force. However, Elon Musk, Tesla’s CEO, says if everything works out, the Fremont plant could generate 10,000 jobs, and one percent of the globe's car output. Musk has huge dreams for Tesla, which lost nearly $250M since its 2003 launch.
Toyota CEO Akio Toyoda flew in for the ceremony. He had a much better day in the Golden State than he did in February when he was grilled on Capitol Hill on safety concerns.
California Senator Diane Feinstein congratulated both Toyota and Tesla for bringing about the “new life of opportunity, which is inherent in this new venture.” That's music to Toyoda's ears.