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 Smart cars within two years, said Tesla spokeswoman Rachel Konrad. She declined to talk the value of this deal. 

The announcement 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).

Tesla will supply lithium-ion battery packs and chargers to Daimler for a second-generation, all-electric Smart ED, reported AutoblogGreen.

Partnering with a large car company is good news for the San Carlos, Calif.-based Tesla, which has run into money trouble. 

Get the rest of the story at Green Light