If the report is to be believed, Tesla will supply the electronics and software while Toyota will provide the platform itself. Tesla would thus be able to launch a compact SUV at a low cost using the Toyota architecture and, perhaps more importantly, its Japanese market sales figures would increase significantly. At present, it sells around 1,000 units annually. Neither Tesla nor Toyota has commented on the report.
Toyota would likely benefit from the agreement with not only its own version of the vehicle but also major time and cost reductions normally required for ECU and operating system development. It’s still determining whether its own systems can be integrated into Tesla’s over-the-air software update system.