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Tesla Working with Daimler on Battery Supply

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At the Society of Automotive Analysts outlook conference, Tesla CEO Elon Musk said that his company is working with Daimler AG to create an electric version of the Smart car.

Musk said that Tesla has a contract to produce electric powertrains for an initial 1,000 vehicles.

Some of those will be coming to the
US in 2010.

The Smart will use the same battery cells used in the Tesla Roadster. Tesla produces the powertrains using Asian battery technology at its factory in
San Carlos, Calif., executive vice president Mike Donoughe said.

The partnership with Daimler will allow Tesla to start achieving its goal of producing an affordable electric car, Musk said.

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