But the electric RAV4 has sold poorly, despite low-cost lease and loan offers Toyota introduced last year to promote sales. And Toyota has increasingly signaled that it sees fuel cells as the most viable zero-emissions technology, putting it at odds with Tesla, an evangelist for electric-vehicle technology. Toyota is also the world’s biggest manufacturer of gas-electric hybrids.
Toyota said in an emailed statement that it was “re-evaluating” its RAV4 electric vehicle, and that Tesla’s supply agreement for the model would “conclude this year.” Toyota said that its contract had called for Tesla to supply 2,500 battery-electric powertrains for the RAV4.
The Japanese automaker said its focus this year would instead be on its four-door sedan powered by hydrogen fuel cells, which it plans to introduce in California next year. The automaker will also focus on developing hydrogen refueling stations to support fuel-cell technology, it said.
Tesla said Friday in a