Honda Buys $13.8 Million Stake in Tesla

Honda is continuing to make its way into all-electric car ring, after the hybrid Honda Insight already brought in great sales numbers last year. Rumors have circulated for a months and now it seems true - Tesla, the electric sports car maker, is having a huge chunk of their company purchased by Honda.

Tesla announced that it has sold $13.8 million worth of zero emissions vehicle credits, representing 368 cars, to Honda over the last two years.
the two automakers also have an arrangement to exchange credits for another 287 vehicles. Unfortunately for Tesla, the market for its credits will soon largely dry up as Roadster sales have slowed to a trickle and the Model S won't come to market for at least two more years.

It's a good move for Honda, however. There will also be plenty of other sources for these credits - including various competing auto makers who are marketing all electric cars - beginning later this year.

Honda created its first EV plug-in car back in 1997, dubbed the Honda EV Plus. Last year, Honda produced the EV-N plug in concept. This car is rumored to be in production (or some form of it) by 2011 or 2012.

The Japanese auto maker already produces small, electric powered scooters. Now all they have to do is adapt that technology into their automobiles.

For now, you can check out the all new hybrid gas-electric Insight at first Team Honda.
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Tags: Tesla