Tesla's New Business: Selling Batteries To Daimler

Electric car maker Tesla has only sold 150 of its $100,000 Roadsters, and is struggling to meet customer demand. But it now has a sideline business: selling batteries to Diamler AG for its tiny Smart car.

Green Car Congress: Tesla will produce an initial run of 1,000 battery packs and chargers for Daimler AG’s smart electric drive vehicle in 2009 and 2010. Tesla Motors CEO and Product Architect Elon Musk made the announcement at the North American International Auto Show in Detroit. The two companies are working on an official joint release with more specifics, according to Tesla.

According to Daimler, Tesla will provide smart with the batteries for “a higher three-digit volume” of smart electric drive. “This helps us to bridge the time until the industrialisation of Lithium-Ion batteries within our Joint Venture with Evonik will be ready,” said Matthias Brock, Head of Media Relations for Daimler’s Research, Development and Environmental Communications.

No word on pricing, but Dialmer has an option to up the amount of batteries it gets if it is pleased with what Tesla delivers.

See Also:
Tesla Unveils New Model: Same Car, More Expensive!
Tesla’s Musk Calls Co-founder, “The Worst Individual I Ever Worked With.”

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.