Tesla to Build Battery Pack for Daimler’s Smart Car

UPDATED: It turns out, Tesla isn't building the entire powertrain for Daimler, but only the lithium-ion battery pack and chargers for Daimler's Smart cars.

Tesla's spokeswoman told me this morning that "we have a deal to build powertrains for Daimler," but she has since called back to say that Tesla is not building the entire powertrain but only the battery pack and charger.

The deal is to build the components for 1,000 all-electric Smart cars within two years, said Tesla spokeswoman Rachel Konrad. She declined to talk about the value of this deal.

The announcement, made by Tesla CEO Elon Musk at the Detroit auto show, confirmed speculations that have swirled over the past year that the startup electric carmaker could ink a deal with Daimler to supply auto parts (see Green Light post). Musk went to Detroit to tout the company's powertrain technology and look for new customers, Konrad said.

Tesla delivered the first prototype battery to Daimler a year ago, but the commercial version is still under development, Konrad said. Tesla plans to build the batteries in California. 

Partnering with a large car company is good news for the San Carlos, Calif.-based Tesla, which has run into money trouble. It wasn’t able to raise the money needed to build a factory for its second car, the Model S, and had to get an emergency cash infusion from its existing investors while waiting for the U.S. Department of Energy to approve loan guarantees. Tesla plans to introduce the Model S in 2011 instead of 2010.

Could Tesla also be working with Daimler to build its third model? Musk has talked about partnering with another company to develop a cheaper car that would cost less than $30,000 (see Tesla Coughs Up Sedan Price, Details On Economy Car).

Tesla is currently shipping its first model, the $109,000 Roadster. It has delivered more than 150 Roadsters to customers so far. More than 1,000 wealthy folks are on the waiting list.

The company also announced a sports car version of the Roadster on Monday (see Tesla Spiffs Up Roadster; Chrysler Touts All-Electric Sports Car).