Tesla Motors to Supply Batteries For Daimler’s Electric Mini Car

DETROIT–Tesla Motors Inc. said it will supply batteries and chargers to Daimler AG for its new electric mini 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.

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.”

Smart will launch a limited release in select markets in the second half of 2010 and regular production in 2012.

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.

WSJ