Palo Alto, California – Toyota has signed an agreement with electric vehicle company Tesla Motors to develop an electric version of the Toyota RAV4. The company plans to bring the vehicle to market in 2012.

A prototype has already been built, combining a RAV4 with a Tesla electric powertrain, and is now undergoing testing. Tesla plans to produce and deliver a fleet of prototype vehicles to Toyota for evaluation within this year.

In May, Tesla and Toyota announced their intent to cooperate on the development of electric vehicles, parts, and production system and engineering support.

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