NEW YORK (CNNMoney.com) -- Electric carmaker Tesla Motors will deliver two prototypes to Toyota Motor Co. by the end of the month, a Tesla executive said Saturday.
The prototypes will use Tesla's electric motors and battery packs and the bodies of Toyota vehicles.
"Toyota and Tesla engineering teams have made a lot of progress in a short amount of time and it is exciting to start seeing some initial results," Tesla Chief Technology Officer JB Straubel said in a statement.
Toyota announced in May that it planned to invest $50 million in Tesla Motors (TSLA) following the electric car maker's initial public offering, which took place on June 29. Tesla's stock closed Friday at $17.40, down 21% over five days.
Toyota, which is already the industry leader in gas-electric hybrid cars, is also looking for other partners to develop future alternative fuel technologies. In fact, collaboration with other companies is expected to be a key part of Toyota's alternative fuel strategy.
Toyota executives have, in the past, expressed doubts about the market potential for purely electric cars. They have citing the vehicles' high cost, relatively short driving distance, long charging times and questionable battery technology.
Last year, Toyota (TM) revealed a concept version of a tiny electric "city car" with a 40 mile range. That car is under development, Toyota said at the time, and is intended primarily for short-term rental use within cities.
The Tesla project is separate from that one.
Unionized Verizon workers who had been striking since mid-April will return back to work on June 1 after negotiating a healthy pay raise and bonus. More
The FBI has opened a national security investigation into the hacking of Bangladesh's central bank amid signs that the hack might have come from North Korea. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The gender pay gap in the labor market is pretty well documented. But the gender gap also exists in the housing market. More