Tesla, Toyota Strike $100M Deal to Make Electric SUV

Toyota (NYSE:TM) will pay Tesla Motors (NASDAQ:TSLA) $100 million in a new supply and services agreement that will make the Detroit automakers Rav4 electric.

Under the terms of the deal, which was reached on July 15, Tesla will supply Toyota with a validated electric powertrain system, including a battery, charging system, inverter, motor, gearbox and associated software for use in an electric version of the small SUV.

Tesla said in a filing with the Securities and Exchange Commission that the two companies developed an electric powertrain system for the Rav4 in July 2010. Months after, they entered into a service agreement for the development of the system in the SUV.

Production of the electric RAV4 is slated to start in 2012 and continue through 2014.

Earlier this month, Toyota announced an electric version of its Scion iQ car, which it said makes Toyota the only automaker offering two electric cars in 2012.

Toyota bought $50 million of Teslas stock last July shortly after the maker of electric vehicles initial public offering. Shares of Tesla, based in San Carlos, Calif., jumped more than 6% Wednesday afternoon on the news.