(Reuters) - Toyota Motor Corp said it would take a $50 million stake in U.S. electric carmaker Tesla Motors, a move that gives the Japanese automaker a chance to repair its dented public image and vaults the California start-up on to the world stage.
The David-and-Goliath handshake highlights a changing dynamic in the auto industry, where newcomers such as Tesla and BYD Co of China are challenging established players in the uncharted field of mass-produced all-electric vehicles.
At a joint news conference in California, Tesla Chief Executive Elon Musk described the investment as a "gesture of support" from Toyota Chief Executive Akio Toyoda, who approached him in a whirlwind corporate romance that included dinner at Musk's house and a test ride around Los Angeles in Tesla's pricey electric Roadster sport car over the last month.
Tesla aims to tap Toyota's expertise in mass production while Toyota wants to win back public support hurt by its Prius hybrid recalls and San Francisco Bay Area protests against its decision to close the plant that Tesla is buying. Link