California-based electric car manufacturer Tesla announced that it has reached a deal with German automaker Daimler AG to sell 1,000 battery packs for use in electric versions of the Smart minicar. Daimler, parent company of Smart, says it is planning to bring the Smart EV to market in the near future.

Tesla’s CEO, Elon Musk, told the media that, “It is a significant achievement for Tesla that Daimler would choose to work with us.”

Musk said that he hopes the initial contract between the two automakers will eventually lead to a larger contract that could see thousands of Tesla-produced batteries being installed in Smart EVs.

Tesla recently introduced a performance version of its electric Roadster at the North American International Auto Show in Detroit. Smart is dipping its toes into the electric market in order to compete with the Mini E, an electric-powered, BMW-built Mini Cooper.



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