Tesla Motors to Supply Batteries for Daimler's Electric Mini Car

By KATE LINEBAUGH
DETROIT -- Tesla Motors Inc. said it will supply batteries and chargers to Daimler AG for its new electric Smart car, which is slated to come out in the second half of 2010, as the race to get electric vehicles into the market heats up.
Mike Radakovich
Telsa battery pack and frame
Elon Musk, chairman and chief executive of Tesla, said Tesla will supply battery packs for 1,000 vehicles and that could grow to "tens of thousands."
The talks between the two companies began in the summer of 2007. Currently, Tesla is sending prototypes to Daimler.
Smart will launch a limited release in select markets in the second half of 2010 and regular production in 2012.
Mr. Musk aims to develop similar partnerships with other auto makers.
Tesla also will begin selling its high-end Roadster sport car in June and is in the process of ramping up production from 15 vehicles a week to 30.

Mr. Musk said the company is sold out until November. He also estimates that Telsa will be profitable by the middle of the year.
Daimler's Smart division announced plans to launch an electric vehicle at the North American International Auto Show as auto makers from Toyota Motor Corp. and Ford Motor Co. revealed plans to develop electric vehicles.
Daimler currently has a small fleet of electric Smarts on the road in London with batteries by a different supplier.
Tesla, a Silicon Valley electric-vehicle company, is in the process of seeking federal loan assistance to help develop a sedan, which it hopes to get on the road in mid-2011. Tesla will release a drivable prototype of the Model S sedan in February, Mr. Musk said. And the vehicle will come with a price tag of $49,900 after the consumer tax credit.
"We are working as rapidly as possible to bring affordable cars" to the mass market, Mr. Musk said.
Write to Kate Linebaugh at kate.linebaugh@wsj.com