This Tesla Product Just Got Discounted

By John Rosevear – Sep 4, 2013 at 6:18PM

NASDAQ: TSLA

Tesla

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Toyota just announced new incentives on its all-electric RAV4, an appealing SUV with a drivetrain built by Tesla Motors. Why isn't it selling better?

Toyota's RAV4 EV features an electric drivetrain and battery systems that were designed and built by Tesla Motors. Photo credit: Toyota.

It seems like a formula for electric-car success: Take one of your most popular gas-powered models, and have the whizzes at Tesla Motors (TSLA -3.55%) convert it to all-electric power using their own special high-tech sauce.

It may seem like a great idea, but the reality hasn't worked out so well for Toyota (TM -0.91%) and the Tesla-powered electric version of its RAV4 SUV. Last week, Toyota announced big incentives on the battery-operated RAV4, and in this video, Fool.com contributor John Rosevear looks at why this winning formula isn't working out so well in practice.

Fool contributor John Rosevear has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.