Tesla and Toyota might be forming a budding partnership

According to an official from the Japanese automotive industry, Toyota and Tesla have been reviewing the partnership since last year and are approaching the final stage.

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There is news in the market about the reported collaborations between two of the largest carmakers in the world, Toyota and Tesla.

A news article by the top South Korean newspaper Chosun Ilbo read that Tesla and Toyota have reviewed the partnership since last year and are approaching the final stage.

The article claims that an official from the Japanese automobile industry on the 28th March, “Tesla and Toyota are considering jointly developing a small electric SUV platform (the car’s basic skeleton). The partnership review has been conducted since last year. “

According to the reports, Toyota will provide the platform to Tesla, and in return, the famous electric car manufacturer will provide the software and electric control platform to the biggest automaker in the world.

With this partnership, Tesla will be able to launch a compact SUV at low cost using the Toyota Platform, and the former’s sales would increase in Japan.

Read More: Op-ed: Electric Vehicles (EVs) in Pakistan

At the ‘Battery Day’ last year, CEO Tesla said, “We will release a $ 25,000 (half price) electric car in 2023.” However, experts believe that it would be difficult for Tesla to produce such a cheap electric car.

It might be a smart move for both Tesla and Toyota. Some people may be skeptical of a Tesla Toyota partnership, but we must remember that Tesla helped built Toyota RAV4 in 2012.

Toyota can also significantly reduce the resources and time spent on the innovation of its vehicle’s integrated electronic control platform (ECU) and operating system (OS) by using Tesla technology.

So, Tesla can reduce the cost and period of developing small electric SUVs and Toyota’s benefit is the gain in ECU and OS development.

Meanwhile, Tesla CEO Elon Musk went to Twitter on the 27th of March to say that “the likelihood that Tesla will soon become the largest company in the world is higher than 0%.” Although the context is not clear, it was also written “probably within a few months,” an expression that can be interpreted as referring to a period.

However, the Tweet was deleted soon after posting.

The biggest problem with Tesla is its low production and thus the company has not yet achieved economies of scale. However, if the alliance with Toyota is established, it can receive great power to expand mass production faster and at a lower cost.

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