11. Strategic Partnerships
Daimler AG
Daimler Mercedes-Benz EV Program
During the fourth quarter of 2011, Daimler engaged us to assist with the development of a full electric powertrain for a Daimler Mercedes-Benz B-Class EV vehicle. In 2012, we received two purchase orders from Daimler to begin development work and also entered into a separate development agreement. Pursuant to the development agreement, Daimler would pay us up to $33.2 million for the successful completion of certain at risk development milestones and the delivery of prototype samples. During the years ended December 31, 2013 and 2012, we completed various milestones and delivered prototype samples and recognized $15.6 million and $15.9 million in development services revenue, respectively.
Toyota Motor Corporation
Toyota RAV4 Program
In July 2010, we and Toyota entered into a Phase 0 agreement to initiate development of an electric powertrain for the Toyota RAV4. Under this early phase development agreement, prototypes were made by us by combining the Toyota RAV4 model with a Tesla electric powertrain.
During the year ended December 31, 2011, we recognized $7.6 million in development services revenue. As of December 31, 2011, we had delivered all prototypes; therefore, no additional Phase 0 revenue was recognized during the years ended December 31, 2013 and 2012.
In October 2010, we entered into a Phase 1 contract services agreement with Toyota for the development of a validated powertrain system, including a battery pack, power electronics module, motor, gearbox and associated software to be integrated into an electric vehicle version of the Toyota RAV4. Toyota paid $60.1 million for the successful completion of certain at risk development milestones and the delivery of prototype samples, including a $5.0 million upfront payment that we received upon the execution of the agreement. During the years ended December 31, 2012 and 2011, we completed various milestones and along with the amortization of our upfront payment and the delivery of certain prototype samples, we recognized $10.7 million and $47.4 million in development services revenue, respectively. As of March 31, 2012, all development milestones under the Phase 1 agreement had been completed; therefore, no additional revenue was recognized during the year ended December 31, 2013.
In July 2011, we entered into a supply and services agreement with Toyota for the supply of a validated electric powertrain system, including a battery pack, charging system, inverter, motor, gearbox and associated software, which will be integrated into an electric vehicle version of the Toyota RAV4. Additionally, we will provide Toyota with certain services related to the supply of the electric powertrain system. During the three months ended March 31, 2012, we began delivering electric powertrain systems to Toyota. During the years ended December 31, 2013 and 2012, we recognized revenue of $42.9 million and $29.1 million in automotive sales related to these sales, respectively. Our production activities under this program are expected to continue through 2014.